Titan, the Dutch independent supplier of low and zero-emission fuels, has acquired two small scale LNG carriers – the ‘Seapeak Unikum’ and ‘Seapeak Vision’ – from Canadian gas transportation company Seapeak, formerly known as Teekay LNG Partners.
The vessels will be retrofitted to ensure suitable LNG bunkering capabilities, enabling them to both transport and bunker LNG, liquefied biomethane (LBM), and in the longer-term hydrogen derived e-methane (e-LNG). Both sister vessels have a cargo capacity of 12,000m3 and are 152m in length by 19.8m in width. The two vessels will join Titan’s fleet in March 2023, operating in the Mediterranean and Northwestern Europe to cater for increased demand for LNG and LBM (bio-LNG) in these regions.
The vessels and the retrofit are financed by Sole Shipping Group through a long-term bareboat charter leasing structure. Sole Shipping Group is a major European provider of financial leasing structures. Titan was advised on this transaction by Endegeest Consulting.
Titan’s fleet already includes a mix of owned and chartered vessels. Furthermore, Titan has an ambitious newbuild program with the Titan Krios and Titan Hyperion designs. The two new additions to the fleet allow Titan to deliver fuel to a wider range of LNG-powered vessels, including all container ships. After the upgrades, Seapeak Unikum and Seapeak Vision will be able to load at all major LNG terminals and perform ship-to-ship bunkering and loading operations.
Thanks to their cargo conditioning capabilities, the vessels are capable of undertaking more complex projects, including gas-up cool-down operations and commissioning parcels. As the cargo tanks are made of stainless steel, they will be compatible with propylene, ethylene, and ammonia.
Douwe de Jong, fleet development director Titan, said: “Retrofitting these ships so that they can trade and bunker LNG, LBM, and in the longer-term hydrogen derived e-methane, offers Titan even more flexibility in its clean fuel operations. The team is currently specifying the upgrades and finding a suitable shipyard for the retrofit work.”
Niels den Nijs, owner and CEO Titan, added: “A Solid double digit EBITDA in 2022 has allowed us to make this additional investment in our fleet. This decision aligns with Titan’s ambitious growth strategy in Europe and the Mediterranean. We look forward to continuing to work with our partners, like Sole Shipping Group, to expand our fleet to support our LNG and LBM distribution targets and serve our customer’s long-term demand.”
Titan says it remains committed to supplying all clean fuels that can decarbonise shipping, transport and industry in a substantial way as they become feasible. It recognises that decarbonisation will require a range of solutions, and the LNG pathway to net-zero emissions using LNG, LBM and hydrogen-derived e-methane is a practical option available right now.
The announcement of this vessel acquisition follows recent news from Robert Habeck, vice chancellor of Germany and a member of the German green party, that Germany has granted a total of €62m to a partnership of three companies, including Titan, for the construction of the Titan Krios new build LNG bunker vessels.
