The acquisition of new build LNG carriers

The acquisition of new build LNG carriers

The acquisition of new build LNG carriers

case study 13

M&A Transactions – Gas & LNG

The Engagement:

Commercial Due Diligence
LNG newbuild vessels

The Client:

European Infrastructure Investment Fund


2 months

Transaction summary

  • Proposed acquisition of two 180,000 cubic meter new-build LNG carriers 
  • Vessels to be built in a major Korean shipyard for delivery mid-decade
  • Our client wanted to assess partnering with a renowned ship owner for the provision of management services for the construction and contract life of the new build LNG carriers.
  • Transaction supported by a long-term time charter contract with a major participant in the LNG markets, providing secure cashflows


  • Provided the client with full commercial due diligence to support the submission of a binding offer and to secure debt financing
  • Detailed overview of the global LNG market and long-term LNG and gas supply and demand forecasts. Provided an overview of the LNG shipping sector
  • Directional analysis of long-term LNG shipping rates
  • Commercial review of commercial agreements including  shipbuilding contracts and long-term time charter contracts (TCP), highlighting risk allocations and cost assumptions
  • Provided commercial inputs into the valuation model including re-contracting rates at the expiry of the TCP