US-listed handysize liquefied gas carrier owner and operator Navigator Holdings has revealed that it entered into contracts to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard (Group) and China Shipbuilding Trading in China.
The newbuild vessels are scheduled to be delivered to the company in March 2027 and July 2027 respectively, at an average price of $102.9m per vessel.
They will be able to carry a wide variety of gas products, ranging from the most complex petrochemical gases, such as ethylene and ethane, to LPG and clean ammonia.
The owner said the vessels will be fitted with dual-fuel engines for ethane, a low-carbon intensity transitional fuel, and made retrofit-ready for using ammonia as a fuel in the near future.
Additionally, the vessels will be capable of transiting through both the former and the new Panama Canal locks.
Meanwhile, the shipowner has also agreed an option with the Jiangnan Shipyard (Group) Co. Ltd. and China Shipbuilding Trading Co. Ltd. for an additional two newbuilding vessels of the same specification and price as the newbuild vessels, with expected delivery to the company in November 2027 and January 2028, respectively, if the option is exercised.
Mads Peter Zacho, chief executive officer said: “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”.
As it is reported, the company plans to finance the newbuild vessels with a combination of cash on hand and new debt.
The newbuilds have not been backed by charter contracts, but the shipowner said it intends to fix charters before their delivery.
Navigator Gas’ fleet consists of 56 semi- or fully-refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable.
