Navigator Holdings Expands Fleet and Capacity with three ethylene carriers
Navigator Holdings, a prominent player in the liquefied gas shipping industry, has made a significant move to enhance its operational capabilities. The company, listed on the New York Stock Exchange, has announced its agreement to purchase three liquefied ethylene carriers. This acquisition aligns with the recent expansion of the Morgan’s Point export terminal in Texas, positioning Navigator to better meet the growing demand for ethylene and ethane in the global market.
Strategic Acquisition of Ethylene Carriers
Navigator Holdings is set to acquire three German-built liquefied ethylene carriers for a total of $83.9 million. These vessels, each with a capacity of 17,000 cubic meters, will bolster Navigator’s fleet, which will expand to 59 ships following the delivery of these new additions. The specific vessels involved in this transaction have not been publicly named, but industry databases suggest they may include the 2009-built Gaschem Pacific and the 2010-built Gaschem Adriatic and Gaschem Antarctic. These ships were recently sold to undisclosed buyers, raising speculation about their potential inclusion in Navigator’s fleet.
The delivery of these carriers is expected between February and May 2025. Once integrated into the fleet, Navigator plans to operate them in the spot market, allowing for flexible and responsive service to meet customer needs. This strategic acquisition not only enhances Navigator’s operational capacity but also reinforces its position as a leader in the handysize LPG carrier segment. The company aims to leverage these new vessels to capitalize on the increasing demand for ethylene and ethane in various markets.
Expansion of Morgan’s Point Export Terminal
In conjunction with the acquisition of the new carriers, Navigator Holdings is also expanding its Morgan’s Point ethylene export terminal. This facility is a joint venture with Enterprise Products Partners, and the recent expansion is set to significantly increase its export capacity. By late December, the terminal’s capacity was expected to rise by at least 550,000 tonnes, bringing the total to 1.55 million tonnes per year starting in 2025. There are even plans to potentially increase this capacity to 3.2 million tonnes in the coming years.
Mads Peter Zacho, CEO of Navigator Gas, emphasized the importance of this expansion. He noted that the future demand for competitively priced US ethane and ethylene is likely to continue its upward trajectory. The combination of the terminal’s expansion and the addition of new ethylene carriers will provide Navigator with the necessary infrastructure and capabilities to meet this growing demand effectively. This strategic move positions Navigator Holdings to not only enhance its operational efficiency but also to play a crucial role in the global ethylene market as it continues to evolve.
