Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) (NYSE: NVGS), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, announces that today, it entered into contracts (the “Contracts”) to build two new 48.500 cubic meter capacity liquefied ethylene gas carriers (the “Newbuild Vessels”) with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co.. Ltd., (together, the “Sellers”) in China.
The Newbuild Vessels are scheduled to be delivered to the Company in March 2027 and July 2027 respectively, at an average price of $102.9 million per vessel The Newbuild Vessels will be able to carry a wide variety of gas products, ranging from the most complex petrochemical gases, such as ethylene and ethane, to LPG and clean ammonia. The Newbuild Vessels will be fitted with dual-fuel engines for ethane, a low-carbon intensity transitional fuel, and made retrofit-ready for using ammonia as a fuel in the near future. Additionally, the Newbuild Vessels will be capable of transiting through both the former and the new Panama Canal locks, providing enhanced flexibility.
The Company has also agreed an option with the Sellers for an additional two newbuilding vessels of the same specification and price as the Newbuild Vessels, with expected delivery to the Company in November 2027 and January 2028, respectively, if the option is exercised.
Mads Peter Zacho, CEO, commented:
“Building these vessels strengthens the link between our ethylene export terminal at Morgan’s Point and our global customers. They enable us to maintain a safe, efficient, and reliable ethylene transportation capability that is both competitive and future-ready, using assets adapted to the low carbon fuel landscape”.
The Company does not intend to issue any new capital but plans to finance the Newbuild Vessels with a combination of cash on hand and new debt. These investments are expected to be accretive to the Company’s earnings. Neither of the Newbuild Vessels is currently chartered, but the Company intends to fix charters prior to their delivery, although there is no assurance that they will be so chartered.
Source: Navigator Holdings Ltd.
