Greek diversified shipowner Capital Product Partners L.P. (CPLP) has received approval for a corporate transformation and name change, with plans to shift its strategic focus to the liquefied natural gas (LNG) shipping sector and the energy transition business.
Recently, CPLP posted on its website that the approval by a majority of the unitholders, the conflicts committee of our Board of Directors (the “Committee”), our full Board of Directors (the “Board”) and our general partner, Capital GP L.L.C. (the “General Partner”), of the conversion of CPLP from a Marshall Islands limited partnership to a Marshall Islands corporation (the “Conversion”) and the renaming of CPLP to “Capital Clean Energy Carriers Corp.” (the “Name Change”). In connection with the Conversion, the General Partner will give up its existing management and consent rights with respect to CPLP.
The Conversion and the Name Change are key milestones in CPLP strategic pivot towards the transportation of various forms of natural gas to industrial customers, including liquefied natural gas (“LNG”) and new commodities emerging as a result of the energy transition, as initially announced in November 2023. To accomplish this goal, CPLP entered into 11 newbuild LNG carriers acquisition agreements with Capital Maritime & Trading Corp. and Capital GP in November 2023, and completed the related matters in December of the same year.
In June 2024, CPLP also ordered 10 state-of-the-art, high-specification gas carriers, including four unique handy multi gas carriers that can carry liquid CO2. These, along with the Newbuild LNG/C Vessels, collectively form the “Energy Transition Vessels”. This $3.9 billion investment, notable both in asset value and scope, demonstrates CPLP commitment to becoming a leading provider of transportation for LNG and other clean fuels.
The company has already made significant progress on refocus of the business with 12 latest generation LNG/C vessels currently on the water plus the disposal of seven legacy container vessels during the first half of 2024. Upon delivery of the remaining Energy Transition Vessels between the first quarter of 2026 and the third quarter of 2027, CPLP expect to become the largest U.S.-listed LNG shipping company and will offer industrial customers a full range of transportation solutions.
The official website shows that CPLP has a fleet of 23 vessels, including seven LNG carriers, 12 neo-Panamax containerships, three Panamax containerships and one Capesize bulk carrier. As of June 30, 2023, the weighted average age of the fleet is seven years.