The new LNG carriers are expected to be delivered in 2027. Credit: Shaah Shahidh / Unsplash.

Samsung Heavy Industries (SHI) has received a contract worth around $1.1bn from Seapeak for the construction of five new liquefied natural gas (LNG) carriers.

Under the contract, SHI will build five 174,000m³ M-type, electronically controlled, gas admission (MEGA) propulsion vessels.

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These new LNG carriers are expected to be delivered in 2027.

Each of the new carriers will operate under a fixed-rate time-charter contract for an undisclosed international energy major for ten years after they are delivered.

The deal also has an option for the charter to be extended.

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Seapeak plans to fund the initial newbuilding construction instalment payments through an equity contribution from investment funds managed by its sponsor, Stonepeak.

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To fund the remaining construction expenses, Seapeak is anticipating long-term debt funding.

An independent owner and operator of liquefied gas carriers, Seapeak has interests in 46 LNG carriers, 20 mid-size liquefied petroleum gas (LPG) carriers and six multi-gas carriers.

Its stake in these vessels ranges between 20% and 100%. The company offers services under long-term and fee-based charters.

Furthermore, the firm has a 30% stake in an LNG regasification terminal and has agreed to buy Danish shipping company Evergas.

Last February, SHI received a contract to build five 15,000 twenty-foot equivalent unit (TEU) LNG-fuelled boxships for an unnamed Asian customer.

The new vessels will help the shipowner abide by regulations on emissions of harmful gases, such as sulphur oxides and carbon dioxide.