Navigator Gas Announces Order for Two New 48,500 Cubic Meter Capacity Liquefied Ethylene Gas Carriers
LONDON – Navigator Holdings Ltd. (referred to as “Navigator Gas” or the “Company”) (NYSE: NVGS), known for operating the largest fleet of handysize liquefied gas carriers globally, has made a notable announcement regarding its fleet expansion. The Company has signed contracts for the construction of two new liquefied ethylene gas carriers, each boasting a capacity of 48,500 cubic meters. These agreements were made with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd.
Details of the Newbuild Vessels
The new vessels are set to be delivered in March 2027 and July 2027, with each vessel estimated to cost around $102.9 million. These advanced carriers will be capable of transporting a wide range of gas products, including complex petrochemical gases such as ethylene and ethane, as well as liquefied petroleum gas (LPG) and clean ammonia. Each vessel will be equipped with cutting-edge dual-fuel engines optimized for ethane, a low-carbon intensity fuel, and designed for future retrofitting to operate on ammonia, thereby enhancing their environmental sustainability.
Enhanced Transit Capabilities
Beyond their robust design, the Newbuild Vessels will have the capability to navigate through both existing and new locks of the Panama Canal, providing the operational flexibility that is crucial in today’s ever-evolving shipping landscape.
Future Expansion Potential
Additionally, the Company has secured an option to acquire two more vessels that match the specifications of the Newbuild Vessels. If this option is exercised, these additional vessels could be delivered in November 2027 and January 2028.
CEO's Statement
Mads Peter Zacho, CEO of Navigator Gas, highlighted the strategic significance 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 will be sourced from the Company’s existing cash reserves in addition to new debt. It is expected that these investments will positively impact Navigator Gas's earnings in the future. Although the Newbuild Vessels are not currently chartered, the Company plans to finalize charter agreements prior to their delivery, ensuring they are operationally deployed upon arrival.
About Navigator Gas
Navigator Holdings Ltd. is a leader in the maritime transportation of liquefied petrochemical gases. The Company operates a fleet of 56 semi- or fully-refrigerated carriers, with 25 specifically designed for transporting ethylene and ethane. Navigator Gas plays a crucial role in the liquefied gas supply chain, serving energy companies, industrial consumers, and commodity traders alike. Its fleet is an essential part of 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 reach out to:
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 is planning to construct two new liquefied ethylene gas carriers, which will enhance its capacity for transporting petrochemical gases.
When are the new vessels expected to be delivered?
The delivery of the vessels is scheduled for March 2027 and July 2027.
What is the estimated cost of the new vessels?
The estimated cost for each new vessel is approximately $102.9 million.
How is Navigator Gas financing the new vessels?
The financing for the new vessels will come from a combination of the Company's existing cash reserves and new debt.
What capabilities will the new vessels have?
The new vessels will be designed to carry a variety of gas products and will feature dual-fuel engines that can operate on both ethane and ammonia, enhancing their sustainability.
