Dynagas LNG Partners LP Stock

Dynagas LNG Partners LP, through its subsidiaries, owns and operates liquefied natural gas (LNG) carriers. Dynagas GP LLC serves as a general partner of the company.

Fleet

As of April 21, 2023, the company owned and operated a fleet of six LNG carriers, consisting of the three modern steam turbine LNG carriers in its Initial Fleet, the Clean Energy, the Ob River and the Amur River, and three modern tri-fuel diesel electric (TFDE) propulsion technology Ice Class LNG carriers that it additionally acquired from its Sponsor the Arctic Aurora, the Yenisei River, and the Lena River, which it collectively refers to as its Fleet. As of April 21, 2023, the vessels in the company's Fleet had an average age of 12.7 years and is contracted under multi-year charters with an average remaining charter term of approximately 6.3 years. All of the vessels in the company's Fleet vessels are employed on multi-year time charters with international energy companies such as SEFE Marketing and Trading Singapore Pte. Ltd (SEFE), Equinor ASA (Equinor) and Yamal Trade Pte. Ltd. (Yamal).

As of February 28, 2023, only 33 LNG carriers, representing 4.8% of the LNG vessels in the global LNG fleet, have an Ice Class 1A and Ice-class 1A super designation or equivalent rating. As February 28, 2023, there were only 52 LNG carriers in the worldwide liquefied natural gas (LNG) trading fleet, including the six vessels in the company's Fleet, in the size range of 149,000-155,000 cubic meters (cbm), of which 45 have membrane cargo containment system.

Chartering Strategy and Charterers

The company seeks to employ its vessels on multi-year time charters with international energy companies that provide it with the benefits of stable cash flows and high utilization rates. The company charters its vessels for a fixed period of time at daily rates that are generally fixed, but which could contain a variable component to adjust for, among other things, inflation and/or to offset the effects of increases in operating expenses.

In December 2022, the company entered into a new time charter party agreement with Equinor for the employment of Arctic Aurora, with an initial contract term of three years -30 days/+ 15 days. Under the new time charter agreement, the Arctic Aurora is expected to be delivered to Equinor in September 2023.

The Amur River is employed under a 13-year charter party with SEFE that expires in 2028.

The Ob River is employed under a ten-year charter party with SEFE that expires in 2028.

The Clean Energy is employed under an eight-year charter party with SEFE that expires in 2026.

The charters of the Amur River, the Ob River and the Clean Energy are under the control of the German government as of April 4, 2022 when Gazprom Germania (and all its subsidiaries), the indirect parent of Gazprom Marketing and Trading (GMT Singapore), was placed under the control of the German Government (Federal Network Agency) and renamed to SEFE GmbH. The vessels under the time charters with SEFE no longer trade from Russian LNG ports.

Environmental and Other Regulations in the Shipping Industry

A variety of government and private entities subject the company's vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the United States Coast Guard (USCG), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators.

Each of the company's vessels is in compliance with the IGC Code (International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk) and each of its new buildings/conversion contracts requires that the vessel receive a certification that it is in compliance with applicable regulations before it is delivered.

If other Emission Control Areas are approved by the IMO (International Maritime Organization, the United Nations agency for maritime safety and the prevention of pollution by vessels), or other new or more stringent requirements relating to emissions from marine diesel engines or port operations by vessels are adopted by the U.S. Environmental Protection Agency (EPA) or the states where the company operates.

The company's vessels are in substantial compliance with SOLAS (Safety of Life at Sea of 1974) and LLMC (the Convention of Limitation of Liability for Maritime Claims) standards.

Under Chapter IX of the SOLAS Convention (International Convention for the Safety of Life at Sea of 1974), or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the 'ISM Code'), the company's operations are also subject to environmental standards and requirements.

The company has obtained Anti-fouling System Certificates for all of its vessels that are subject to the International Convention on the Control of Harmful Anti-fouling Systems on Ships (the Anti-fouling Convention).

Both the U.S. Oil Pollution Act of 1990 (OPA) and CERCLA (the Comprehensive Environmental Response, Compensation and Liability Act) impact the company's operations.

The company complies with and plans to comply going forward with the USCG's financial responsibility regulations by providing applicable certificates of financial responsibility.

The U.S. Environmental Protection Agency and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on the company's vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict the company's vessels from entering the United States (U.S.) Waters.

All the company's vessels are in substantial compliance with and are certified to meet the Maritime Labor Convention 2006.

History

Dynagas LNG Partners LP was founded in 2013. The company was incorporated as a limited partnership in 2013 under the laws of the Republic of The Marshall Islands.