14-year LNG carrier deal lifts CoolCo’s total revenue backlog to nearly $1.9 billion

Bermuda-based LNG carrier owner and operator Cool Company (CoolCo) has signed a multi-year time charter party (TCP) agreement with GAIL (India), the Asian country’s supplier of natural gas.

The 14-year contract, which comes with a two-year extension option, has increased CoolCo’s firm revenue backlog to over $1.2 billion, pushing the total revenue backlog, including extensions, to close to $1.9 billion as of March 31, 2024.

Slated to start in early 2025, when the newbuild carrier will be delivered to the Gulf of Mexico, the deal is meant to secure the long-term supply of LNG to the Indian market.

Satyabrata Bairagi, GAIL’s Executive Director for Marketing – Shipping & International LNG, commented: “GAIL is looking forward to taking delivery of the LNG carrier as part of its ambitious plans for meeting the large and growing demand for natural gas in India.”

This is one of the two LNG carriers the Bermuda-based company is currently building. Both are described as high-performing, highly efficient LNG carriers with low emission levels, scheduled for delivery in 4Q 2024.

Richard Tyrrell, CEO of CoolCo, noted: “We are delighted to announce a long-term charter with GAIL, the leading natural gas company in one of the highest growth markets for LNG.

“The leading-edge technology and best-in-class economic and environmental performance of this newbuild LNG carrier secure GAIL’s ability to transport clean-burning LNG in a highly efficient and cost-effective manner for many years to come.”

Earlier this year, the Indian player secured another source of LNG for the country as it signed a deal with Vitol Asia for the annual provision of around one million metric tons of LNG over ten years, starting from 2026.

The Bermuda-based firm recently inked a new time-charter agreement with Santos Shipping Singapore for one of its vessels that will undergo upgrades to reduce emissions. The company also agreed to have air lubrication system installed on one of its vessels by Armada Technologies.