Photo credit: Seapeak

Seapeak, an LNG shipowner-operator with LPG Vessels, spoke in its ESG report 2022 about its decision to sell the Seapeak Arctic for recycling. The decision was made in 2022 and this was due “to the vessel’s older age, steam turbine propulsion system, and its smaller size, which left it less efficient than newer LNG carriers and its competitiveness on the LNG charter market limited.”

Seapeak underwent a rigorous yard selection process following the Hong Kong Convention, including a third-party audit by Zener Maritime Solutions, ensuring that all compliance measures were in place including the inventory of hazardous materials (IHM), the Ship Recycling Facility Plan (SRFP), and the Ship Recycling Plan (SRP).

The outcome resulted in the Seapeak Arctic (renamed the Artica) being sold to Best Oasis (cash buyer) for USD $15 million and in the process of recycling, at the time of writing its ESG report 2022, at the Priya Blue industries Pvt. Ltd. shipyards in Alang, Gujarat, India.

The shipowner now says it will monitor the recycling of the vessel until its completion and have included stop work provisions in the sales contract if any non-compliances occur.

Seapeak, a company formed following the acquisition of Teekay LNG Partners by Stonepeak, with ownership interest in a 90-vessel fleet, owns a 30 percent interest in a LNG regasification terminal in Bahrain.

It is worth mentioning that Seapeak has most recently acquired Evergas for $700 million, which primarily focuses its operations on the shipment of ethane – a greener global fuel source relative to LNG.