Navigator Holdings (Navigator Gas), a UK-based owner and operator of the ‘world’s largest’ fleet of Handysize liquefied gas carriers, has entered into a joint venture with Norwegian ammonia specialist and shipping company Amon Maritime.
According to the JV agreement, Navigator will acquire approximately 80% of the joint venture company, Norway-based Navigator Amon Shipping AS, with Amon Maritime holding approximately 20%, subject to the investment terms and conditions.
As informed, the newly formed JV intends to construct two 51,530 cubic meter capacity ammonia-fueled liquefied ammonia carriers , which will also be capable of carrying liquefied petroleum gas.
Navigator Amon Shipping AS has entered into contracts with China’s shipbuilder Nantong CIMC Sinopacific Offshore & Engineering to build the vessels, with deliveries scheduled to take place in June and October 2028, respectively, at an average price of $84 million per vessel.
Each of the gas carrier projects was awarded a NOK 90 million (approx. $9 million) investment grant from the Norwegian government agency Enova. It is expected that the JV will finance the majority of the purchase price of the vessels through commercial bank finance, with the remainder sourced from capital contributions from the two JV partners.
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Once delivered to the JV, subject to customary conditions, each of the newbuilds will be operated under Navigator Amon Shipping pursuant to long-term time charters with a blue-chip company, each for a period of five years from delivery, according to Navigator Gas.
“Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy,” Mads Peter Zacho , Chief Executive Officer of Navigator, commented.
“These modern vessels will be equipped with newly developed technologies that comply with present and future environmental regulations and will thereby deliver great value to both our customers and our shareholders.”
“Amon Maritime was founded with a vision to lead the green shift in shipping by pioneering the use of ammonia fuel. We are proud to realize this vision alongside our forward-looking and competent partners in Navigator Gas, serving ammonia-powered transportation services to market leaders. We are very satisfied to expand and strengthen our relationship with Navigator Gas further by constructing and operating these vessels,” André Risholm , Chief Executive Officer of Amon Maritime, said.