Americas News
Tanker Fleet Investors Bullish on U.S. Energy Exports
Surging levels of oil and gas production in the U.S. are pushing investors to acquire tanker fleets, Bloomberg reports.
Major alternative asset manager Blackstone Group LP, Norwegian shipping magnate John Fredriksen, and American billionaire investor Wilbur Ross are all focusing attention on vessels for hauling processed fuels.
Blackstone's Tactical Opportunities Fund says it has invested "several hundred million dollars" on equity in ship assets, including stakes in nine product tankers, over the past two years.
The company is also financing an expansion by liquefied petroleum gas (LPG) carrier owner Eletson Gas, while Ross has invested in product tankers and LPG carriers.
Navigator Holdings Ltd, which is majority-owned by Ross's WL Ross & Co., announced plans last month for a $200 million initial public offering, Seatrade Global reported.
Meanwhile, Fredriksen continues to build on his existing fleet of product tankers and gas carriers.
One of his shipping companies, Frontline 2012 Ltd., announced plans this summer to invest in very large gas carrier (VLGC) operator Avance Gas Holdings Ltd.
Since the U.S. generally bans the export of crude oil, investments in oil shipping are focused on the product tanker market.
"What's going on in U.S. energy makes companies that can export fuels, gas and even chemicals among the industry's more attractive investments," said Erik Nikolai Stavseth, an analyst at Arctic Securities ASA, noting that the investments are especially attractive in a shipping market that generally remains difficult.
Oil product tankers earned an average of $12,825 per day so far this year, according to Clarkson Plc, up 20 percent from 2012.
Clarkson predicts that seaborn exports of U.S. oil products will rise 4.8 percent to 2.39 million barrels per day this year, the highest level since at least 2000.
