- Navigator Gas has signed contracts to build two new dual-fuel ethylene gas carriers, scheduled for delivery in 2027, each capable of carrying a wide range of gas products.
- The new vessels are designed for future low-carbon fuel use and flexibility in global shipping, with an option to build two more vessels by 2028.
- Navigator Gas plans to finance the newbuilds through cash and debt and aims to secure charters for the vessels before their delivery.
Navigator Holdings Ltd., also known as “Navigator Gas,” recently announced the signing of contracts with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd. to construct two new liquefied ethylene gas carriers. These new vessels, each with a 48,500 cubic meter capacity, are scheduled to be delivered in March 2027 and July 2027. The ships will be equipped with dual-fuel engines for ethane and will be ready for future conversion to ammonia fuel, positioning the company well for a low-carbon future, reports Navigator Gas.
New Vessels’ Capabilities and Flexibility
These newbuild vessels will be able to carry a wide range of gas products, from complex petrochemical gases such as ethylene and ethane to LPG and ammonia. The ships will also be designed to pass through both the old and new Panama Canal locks, offering Navigator Gas greater flexibility in its global shipping routes.
In addition, the company has secured an option to build two more vessels of the same specification for delivery in late 2027 and early 2028.
CEO’s Remarks on Assets
Mads Peter Zacho, CEO of Navigator Gas, highlighted the importance of these vessels in supporting the company’s global customers. He stated, “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.”
Navigator Gas plans to finance the new vessels through a mix of cash on hand and new debt. The company does not intend to issue new capital for this purpose.
Although neither of the newbuild vessels has been chartered yet, Navigator Gas intends to secure charters before their delivery, while acknowledging that there is no guarantee of this happening.
About Navigator Gas
Navigator Gas operates the world’s largest fleet of handysize liquefied gas carriers, with a focus on petrochemical gases such as ethylene, ethane, LPG, and ammonia.
The company also owns a 50% stake in the ethylene export terminal at Morgan’s Point in Texas. Navigator Gas’ fleet of 56 vessels plays a critical role in the global liquefied gas supply chain, connecting energy companies, industrial consumers, and commodity traders.
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Source: Navigator Gas
