Marcus Hand | Dec 16, 2021

CoolCo, which plans an IPO on Euronext Growth in Oslo will use the funds, along with contemplated debt refinancing to acquire eight TFDE LNG carriers from Golar. The eight vessels had outstanding debt financing of $150m as of 30 September 2021.

Under the agreement to form CoolCo EPS has subscribed to $150m in equity in the new company making it the largest shareholder in CoolCo. Golar would retain a one-third interest in CoolCo, with EPS taking an active role in the further development of the new company, and also chair of its board of directors.

Related: EPS in charter deal with Rio Tinto for LNG-powered bulkers

It is aimed that CoolCo will become a consolidator in the LNG carrier market. Meanwhile Golar will focus on its FLNG business.

Karl Fredrik Staubo, CEO of Golar commented: “The Cool Company transaction will allow Golar to separate its shipping business and simplify its corporate structure, while maintaining significant and attractive exposure to the LNG carrier business.

Related: Golar LNG inks 20-year lease for FLNG with BP, Keppel invests

“We are excited to develop Cool Company with Eastern Pacific Shipping. EPS is one of the world’s leading shipping companies and a first mover and global trendsetter in ordering LNG-fuelled tonnage in traditional shipping sectors like container, dry bulk, car carriers and tankers.”

Ofer-owned EPS group has a diversified fleet and the new transaction will see it moving into LNG carriers, as well as its existing LNG-fuelled vessels.

Cyril Ducau, CEO of EPS commented: “EPS is pleased to be adding LNG shipping to our diverse shipping portfolio. LNG will play an essential role as a commodity and marine fuel as the world transitions to cleaner energy solution.

“As a provider of dual-fuel LNG tonnage across all our segments, EPS looks forward to taking a leading role in making CoolCo a world-class leader in LNG shipping, combining our complementary skills and expertise with Golar’s.”