CoolCo pens 12-month time charter

Cool Company (CoolCo), a New York-listed LNG carrier management company, has entered into a 12-month time charter agreement with Santos Shipping Singapore for a TFDE (tri-fuel diesel electric) vessel that is set to undergo an upgrade to LNGe specifications, it said on February 7. The charter is expected to commence in the first quarter of 2024.

“This groundbreaking 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," Richard Tyrrell, the CEO of CoolCo, said.

The LNGe specification upgrades include the addition of reliquefaction capability via sub-coolers, as well as air lubrication systems and a range of optimizations and upgrades intended to enhance efficiency and reduce emissions. 

With the Santos charter in place, CoolCo said its fleet utilisation is set to reach 100% until their next vessel becomes available, projected to be after the end of the second quarter. This positive development allows CoolCo management to extend their total operating revenue guidance, estimating $88-89mn for the first quarter of 2024 (compared to $99mn in the first quarter of 2023) and $84-85mn for the second quarter of 2024 (compared to $90mn in the second quarter of 2023).

The expected lower revenue range in the second quarter of 2024 is attributed to off-hire during a scheduled drydock of another vessel, anticipated to be completed within the same quarter. The revenue comparison with the first quarter of 2023 includes contributions from the Seal, a vessel that was sold in the first quarter of 2023.