Seapeak’s LNG Fleet Shake-Up: A Bold Move in a Shifting Energy Landscape
Seapeak Maritime, the maverick owner-operator of liquefied natural gas (LNG) carriers, is making waves in the energy sector with its latest strategic pivot. The company is reportedly mulling the sale of three steam-turbine LNG carriers currently in layup, signaling a decisive shift away from older, less efficient vessel designs. This move comes as the global LNG market grapples with oversupply, shifting demand, and a relentless push toward greener, more efficient technologies.
According to Seapeak’s annual report, three of its seven steam-turbine LNG carriers were idled in early 2025, while the remaining four are slated to complete their long-term charters between late 2026 and mid-2029. The company cited a “perfect storm” of factors driving this decision: a glut of older vessels, waning charterer interest, and the rise of next-gen, fuel-efficient carriers. “The market has spoken,” Seapeak noted, “and it’s clear that these older vessels no longer fit the bill.”
From Impairment to Innovation: The Numbers Behind the Decision
Seapeak’s bold recalibration didn’t come without a cost. In December 2024, the company slashed the carrying values of these vessels to their estimated fair market value, resulting in a staggering $387.1 million impairment charge. The move also saw the company revise the projected useful life of these vessels from 35 to 25 years—a stark acknowledgment of their dwindling relevance in a rapidly evolving industry.
But the challenges don’t stop there. LNG project delays have created a near-term oversupply of carriers, leaving some vessels without charter contracts in 2025 and forcing others to accept lower rates. This aligns with predictions from Norway’s Awilco, which warned in August 2024 that the next three years could be a “turbulent period” for the LNG market. With a flood of newbuild vessels hitting the water and limited new LNG production coming online until late 2025, operators like Seapeak are under pressure to adapt—or risk being left behind.
The Future of LNG: Efficiency or Obsolescence?
As the LNG market pivots toward sustainability, the writing is on the wall for older, less efficient vessels. Steam-turbine carriers, once the workhorses of the industry, are increasingly seen as relics of a bygone era. Newer vessels, equipped with cutting-edge propulsion systems and optimized for lower emissions, are rapidly becoming the industry standard. For Seapeak, this shift represents both a challenge and an opportunity—a chance to shed outdated assets and reinvest in the technologies of tomorrow.
While the road ahead may be rocky, Seapeak’s proactive approach underscores its commitment to staying ahead of the curve. By divesting these vessels now, the company is positioning itself to navigate the choppy waters of the LNG market with agility and foresight. As the energy transition accelerates, only the most innovative players will thrive.
