Shipping Telegraph Navigator Gas and Amon Maritime form JV for ammonia gas carrier newbuilds

New York-listed handysize liquefied gas carrier shipowner and operator Navigator Holdings Ltd. has formed a joint venture with Amon Maritime for the construction of two new ammonia gas carriers.

The JV, named Navigator Amon Shipping, has placed an order with Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. for two vessels, with deliveries scheduled to take place in June and October 2028 respectively, at an average price of $84m per vessel.

Navigator will acquire approximately 80% of the joint venture company, while Amon Maritime will hold around 20%, subject to the investment terms and conditions.

The joint venture intends to construct two new 51,530 cubic meter capacity ammonia fuelled liquefied ammonia carriers, which will also be capable of carrying liquefied petroleum gas.

Each of the vessel projects were awarded a NOK 90m (around $9m) investment grant from the Norwegian government agency Enova.

According to Navigator, 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.

Once delivered, each of the vessels will be operated under the joint venture pursuant to long-term time charters with a blue-chip industry leader, each for a period of five years from delivery.

Mads Peter Zacho, chief executive officer of 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.”

Navigator Holdings Ltd. owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. Its fleet consists of 58 semi- or fully-refrigerated liquefied gas carriers, 27 of which are ethylene and ethane capable.

On the other hand, Amon Maritime is a maritime project development company, working with technology, commercial, and financial partners, to build, own and operate ammonia-powered ships.