Navigator Gas, an operator of liquefied gas carriers, has announced a joint venture (JV) with Amon Maritime named Navigator Amon Shipping to construct two new ammonia-fuelled gas carriers.
Navigator will acquire an 80% stake in the JV, with Amon Maritime holding the remaining 20%, subject to investment terms and conditions.
The JV aims to build two 51,530m3 capacity vessels, also capable of carrying liquefied petroleum gas.
Contracts are already in place with Nantong CIMC Sinopacific Offshore & Engineering for construction at an average cost of $84m per vessel.
Navigator CEO Mads Peter Zacho 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.”
Delivery of the vessels is scheduled for June and October 2028. Each vessel project has secured a Nkr90m (approximately $9m) investment grant from Enova, a Norwegian government agency.
Most of the purchase price for the vessels is expected to be financed through commercial bank finance, complemented by capital contributions from both Navigator and Amon Maritime.
Navigator plans to finance its share of the capital contributions from available cash resources, expecting these investments to be accretive to the company's earnings.
Upon delivery, and subject to customary conditions, each vessel will be operated by the JV under long-term time charters with a blue-chip industry leader for five years from delivery.
Amon Maritime CEO André Risholm said: “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.”
