Norwegian low-carbon shipping company Amon Maritime has entered into a joint venture (JV), to be known as Navigator Amon Shipping, with handysize liquefied gas carrier operator Navigator Holdings (Navigator Gas).
Navigator will hold about 80% of the JV company, with Amon Maritime holding approximately 20%, subject to the investment terms and conditions. The JV intends to construct two new 51,530m3 capacity ammonia-fuelled liquefied ammonia carriers, which will also be capable of carrying LPG cargo.
The JV has entered into contracts with Nantong CIMC Sinopacific Offshore & Engineering to build the vessels, with deliveries scheduled for in June and October 2028 respectively, at an average price of US$ 84m per vessel. Each of the vessel projects has been awarded a NOK 90m (about US$ 9m) investment grant from the Norwegian government agency Enova. It is expected that the JV will finance the majority of the purchase price of the vessels through commercial bank finance, with the remainder sourced from capital contributions from Navigator and Amon Maritime. Navigator expects to finance its share of the capital contributions from available cash resources, and these investments are expected to be accretive to the company’s earnings.
Once delivered to the JV, the vessels will be under long-term time charters with a blue-chip industry leader, each for a period of five years from delivery.
Mads Peter Zacho, CEO Navigator, said: “Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy. These modern vessels will be equipped with newly developed technologies that comply with present and future environmental regulations and will thereby deliver great value to both our customers and our shareholders.”
André Risholm, CEO Amon Maritime, added: “Amon Maritime was founded with a vision to lead the green shift in shipping by pioneering the use of ammonia fuel. We are proud to realise this vision alongside our forward-looking and competent partners in Navigator Gas, serving ammonia-powered transportation services to market leaders. We are very satisfied to expand and strengthen our relationship with Navigator Gas further by constructing and operating these vessels.”
Image: Amon Maritime ammonia-fuelled gas carriers (source: Amon Maritime)
