Navigator Gas Orders Two New Liquefied Ethylene Carriers
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Navigator Gas Announces Order for Two New 48,500 Cubic Meter Capacity Liquefied Ethylene Gas Carriers
LONDON – Navigator Holdings Ltd. (hereafter referred to as “Navigator Gas” or the “Company”) (NYSE: NVGS), renowned for having the world’s largest fleet of handysize liquefied gas carriers, has announced a significant development in its fleet expansion. The Company has entered into contracts to construct two new liquefied ethylene gas carriers, each with a capacity of 48,500 cubic meters. These contracts were signed with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd.
Details of the Newbuild Vessels
The new vessels are scheduled to arrive in March 2027 and July 2027, with each vessel costing an estimated $102.9 million. These advanced carriers will transport a diverse range of gas products, including complex petrochemical gases like ethylene and ethane, as well as liquefied petroleum gas (LPG) and clean ammonia. Each vessel will feature state-of-the-art dual-fuel engines optimized for using ethane—recognized as a low-carbon intensity fuel—and be designed for future retrofitting to operate on ammonia, enhancing their eco-friendliness.
Enhanced Transit Capabilities
In addition to their robust design, the Newbuild Vessels will be equipped to navigate through both existing and new locks of the Panama Canal, offering operational flexibility that is essential in today’s dynamic shipping environment.
Future Expansion Potential
Moreover, the Company has secured an option to acquire two additional vessels matching the specifications of the Newbuild Vessels, which could be delivered in November 2027 and January 2028, subject to the exercise of this option.
CEO's Statement
Mads Peter Zacho, CEO of Navigator Gas, emphasized the strategic importance of this expansion: “Building these vessels strengthens the connection between our ethylene export terminal and our global customers. They enable us to maintain a safe, efficient, and reliable ethylene transportation capability that is both competitive and future-ready.”
Finance and Operational Plans
The financing for the new vessels is planned to be sourced from the Company’s existing cash reserves alongside new debt. It is anticipated that these investments will positively affect Navigator Gas's earnings moving forward. Although the Newbuild Vessels are not currently under charter, the Company intends to finalize charter agreements prior to their delivery to ensure they are operationally deployed upon arrival.
About Navigator Gas
Navigator Holdings Ltd. stands as a leader in the maritime transportation of liquefied petrochemical gases. The Company operates a fleet of 56 semi- or fully-refrigerated carriers, with 25 designed specifically for ethylene and ethane transport. Navigator Gas plays an essential role in the liquefied gas supply chain, catering to energy companies, industrial consumers, and commodity traders alike. Its fleet provides a vital link in the global effort to create a sustainable energy future.
Navigator Gas trades on the New York Stock Exchange under the ticker symbol “NVGS”.
Contact Information
Investor Relations
For inquiries, please contact:
Investor Relations: investorrelations@navigatorgas.com and randy.giveans@navigatorgas.com
Address: 333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002
Telephone: +1 713 373 6197 and +44 (0)20 7340 4850
Frequently Asked Questions
What is Navigator Gas planning to build?
Navigator Gas plans to build two new liquefied ethylene gas carriers, enhancing its capacity to transport petrochemical gases.
When are the new vessels expected to be delivered?
The vessels are scheduled to be delivered in March 2027 and July 2027.
What is the estimated cost of the new vessels?
Each new vessel is estimated to cost around $102.9 million.
How is Navigator Gas financing the new vessels?
Navigator Gas will finance the new vessels using a combination of cash on hand and new debt.
What capabilities will the new vessels have?
The new vessels will be capable of carrying a variety of gas products and will be designed for both ethane and ammonia fuel usage, enhancing their sustainability features.
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