Dynagas LNG Partners DLNG

Dynagas LNG Partners LP is a limited partnership that owns, operates, and acquires liquefied natural gas carriers for the maritime transportation of LNG. The partnership maintains a fleet of six LNG carriers, comprising three conventional steam turbine vessels, Clean Energy, Ob River and Amur River, and three triple fuel diesel electric vessels, Arctic Aurora, Yenisei River and Lena River. The steam turbine ships were built in 2007 and 2008, while the triple fuel diesel electric vessels were delivered in 2013 and feature a membrane containment system and the ability to operate in temperatures as low as minus 30 degrees Celsius. All six vessels are double hulled and employ either a steam turbine or a triple fuel diesel electric propulsion system. The partnership’s principal activity is to charter these ships to energy companies under long term time agreements that provide stable cash flows and high utilization.

The partnership generates revenue chiefly through time charter agreements with its customers, under which it receives a daily hire rate that may contain a fixed component and a variable component linked to operating costs. As of the reporting date, the contracted revenue backlog of the fleet was approximately $0.80 billion, of which about $0.09 billion relates to the variable hire element in certain charters with Yamal. In 2025, approximately 35% of total revenue was derived from Yamal, compared with 34% in 2024, reflecting the significance of that counterparty to the partnership’s earnings. The charterers include SEFE, which charters the Clean Energy, Ob River and Amur River; Equinor, which charters the Arctic Aurora; and Yamal, which charters the Yenisei River and Lena River. Future charters with Rio Grande are scheduled for the Clean Energy and the Arctic Aurora after their current agreements expire. These multi year contracts provide predictable cash flows and support the partnership’s focus on debt repayment and balance sheet strengthening.

Dynagas LNG Partners LP occupies a niche position in the LNG shipping industry due to its ownership of ice class LNG carriers, which are capable of operating in harsh Arctic conditions such as the Northern Sea Route. According to industry data from Drewry, only about 42 LNG carriers worldwide possess Ice Class 1A or equivalent, representing roughly 5 percent of the global fleet. This capability allows the partnership to serve specialized trade routes that require ice strengthened vessels and potentially command a premium over non ice class tonnage. The partnership competes with other LNG carrier operators, ranging from large integrated energy companies to independent shipping firms, but differentiates itself through a combination of long term charters, a modern fleet with an average age of approximately 15.4 years, and the operational flexibility of its mid size vessels (approximately 150,000 to 155,000 cubic meters) that are compatible with most LNG terminals worldwide. The partnership’s current strategy emphasizes debt repayment to improve its balance sheet, positioning it to pursue future growth opportunities such as additional vessel acquisitions, floating storage and regasification units, or other LNG related projects when market conditions allow access to capital on acceptable terms.

The partnership’s customer base consists primarily of international energy companies that charter its vessels for multi year periods. Specific customers named in the filing are SEFE, Equinor, Yamal and Rio Grande. SEFE provides the charters for the Clean Energy, Ob River and Amur River, with expiration dates ranging from March 2026 to July 2028. Equinor charters the Arctic Aurora under an agreement that runs to September 2026, with a follow on charter to Rio Grande scheduled to run to 2033. Yamal charters the Yenisei River and Lena River under long term agreements that include initial terms of 15 years plus extensions, with expiration dates extending into the 2030s and potential further extensions to 2049. Rio Grande is scheduled to charter the Clean Energy and the Arctic Aurora after the expiry of their current agreements. These counterparties collectively supply the bulk of the partnership’s revenue through fixed fee and variable hire arrangements, and the relationships are reinforced by the partnership’s operational expertise and the ice class capability of part of its fleet.