Ocean Yield and KKR to Acquire CapeOmega Gas Transportation

Norwegian shipowner Ocean Yield and vehicles managed by KKR are set to acquire energy infrastructure company CapeOmega Gas Transportation from Partners Group, a global private markets investment manager.

Ocean Yield anticipates that the transaction will increase its adjusted EBITDA backlog by approximately $120 million once it is finalized in the second half of 2025. KKR plans to inject additional equity into Ocean Yield to ensure a strong balance sheet with growth opportunities.

Andreas Røde, CEO of Ocean Yield, stated: “We are pleased to co-invest with KKR in this transaction, which provides attractive exposure to modern LNG carriers, all employed on long-term charters to investment grade-rated counterparties.”

Partners Group considers this transaction a successful exit following a strategic pivot for CapeOmega since its acquisition from HitecVision in 2019 for around $1.35 billion.

CapeOmega co-owns ten LNG carriers operated by Knutsen LNG. Out of these, seven are currently operational with an average age of two years, while three more vessels are expected to be delivered from the shipyard in 2025 and 2026.

According to Ocean Yield, all the vessels are under long-term charters with tier-one investment grade-rated energy companies like Shell, Engie, and QatarEnergy, with an average contract duration of 9 years, extendable up to 16 years.

Evy Glørstad, CEO of CapeOmega, remarked: “In recent years, we have transitioned from being the largest private infrastructure owner on the Norwegian Continental Shelf to a leading global provider of state-of-the-art, fuel-efficient LNG transport. I am grateful to our team, Partners Group, and our co-shareholder, Knutsen, for their collaboration in building this platform.”

The company previously held interests in the Norwegian gas transport system until last year when these were acquired by the Norwegian Energy Ministry as part of the state’s plan to acquire all privately owned participating interests in the natural gas pipeline and terminal networks on the Norwegian Continental Shelf.

This recent transaction follows Ocean Yield’s acquisition of Access Capital Partners’ share in France’s Geogas LNG, increasing its indirect stake in France LNG Shipping (FLS) to 45%, a joint venture between NYK Line and Geogas.