New York-listed LNG carrier owner Cool Company (CoolCo) has entered into a new time charter agreement for one of its tri-fuel diesel electric (TFDE) vessels.
The 12-month time charter is with Santos Shipping Singapore and is scheduled to begin in the first quarter of 2024. In the third quarter of 2024, the vessel is expected to undergo its scheduled drydock. The LNG carrier will then be upgraded to LNGe specifications.
LNGe specification upgrades include the addition of reliquification capability using sub-coolers as well as air lubrication systems and a range of upgrades intended to enhance efficiency and reduce emissions.
The Santos charter will take CoolCo’s fleet utilization to 100% until the next vessel becomes available which will not happen before the end of the second quarter.
This enables the company to extend its total operating revenue guidance to $88-89m for the first quarter of the year and $84-85m for the second, subject to no technical off-hire.
The anticipated lower expected revenue range in the second quarter of 2024 is primarily related to off-hire during a scheduled drydock of another vessel that is expected to be completed within the same quarter.
“This charter is the first to incorporate our LNGe upgrade and our first with Santos. It serves as a model for joint participation in the benefits of our investment in upgrading existing vessels,” said Richard Tyrrell, CEO of CoolCo.
