New York-listed handysize gas carrier owner and operator Navigator Holding is setting up a joint venture with its Chinese partner Greater Bay Gas to acquire five ethylene vessels over the next fifteen months.
The joint venture, owned 60% by Navigator and 40% by Greater Bay Gas, plans to buy two 17,000 cu m and three 22,000 cu m ships built in 2018 and 2019 respectively from Equator Fund, the parent company of Greater Bay Gas, for around $233m.
The vessels represent the entire Greater Bay Gas-operated fleet which is commercially managed by the Luna Pool collaborative arrangement, formed in March 2020 by Navigator, Greater Bay Gas and Pacific Gas in Singapore.
Navigator CEO, Mads Peter Zacho, said the JV was the natural next step in this strategic alliance, which will result in a reduction in the average age of the company’s fleet and allow Navigator to take advantage of more efficient vessels, lowering emissions and offering improved economics to its customers. “The joint venture is accretive as it further consolidates the handysize segment and puts us in a strong position for further growth and development in an evolving marketplace,” he remarked.
Once acquired, the vessels will continue to be commercially managed by the Luna Pool and technically managed by Pacific Gas.
