Americas News
New LNG Carrier Orders for U.S. Shale Gas Exports
In anticipation of a sharp growth in ethane exports from U.S. shale production, Navigator Holdings Ltd. [NYSE: NVGS] (Navigator) says it has exercised options for three liquefied natural gas (LNG) carriers, in addition to one now under construction, for $78.4 million each.
The 35,000 cubic meter ethylene/ethane capable semi-refrigerated carriers will be built at Jiangnan Shipyard in China.
Navigator is ordering the ships with the expectation of increased availability of low-cost ethane and increasing desire by international companies to diversify their feedstock supplies, but it notes that the vessels will have the flexibility to also transport other liquefied gases like propane and butane, along with petrochemicals like ethylene and ammonia.
With exercise of the options, the company now has 13 vessels on order, with deliveries scheduled between late 2014 and 2016.
Navigator completed an initial public offering in November, saying that it would use part of the the net proceeds to fund about $72.7 million in equity due for newbuildings.
