Navigator Holdings (referred to as Navigator Gas) (NYSE:NVGS) has entered into contracts to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd. in China.
The Newbuild vessels will carry various gas products, including complex petrochemical gases like ethylene and ethane, LPG, and clean ammonia. These vessels will be equipped with dual-fuel engines for ethane and will be retrofit-ready for ammonia use in the future.
Additionally, the Newbuild vessels can transit through both the former and new Panama Canal locks, offering increased flexibility.
The Newbuild vessels are scheduled to be delivered to the company in March 2027 and July 2027, respectively, at an average price of $102.9 million per vessel.
The company has also agreed to an option with the sellers for an additional two newbuilding vessels of the same specification and price as the existing vessels. These vessels are expected to be delivered to the company in November 2027 and January 2028, respectively.
The company does not intend to issue any new capital but plans to finance the Newbuild Vessels with a combination of cash on hand and new debt.
The investments are expected to be accretive to the company’s earnings.
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