Navigator Holdings and Greater Bay Gas Company sign vessel acquisition deal

Navigator Gas file-photo-navigator-gas-65938-770x400.jpg
Navigator Holdings Ltd and Greater Bay Gas Company have tightened their co-operation with a vessel acquisition joint venture.

The listed handysize gas carrier owner-operator and Chinese gaseous product logistics company will create a joint venture 60%-owned by Navigator and 40% by Greater Bay gas. The JV intends to acquire five ethylene carriers over the next 15 months, two 17,000 cu m ships built in 2018 and a further three 22,000 cu m ships built in 2019.

The vessels represent Greater Bay Gas’s entire fleet and are currently managed by the Luna Pool, formed in 2020 by Navigator, Greater Bay Gas and Pacific Gas. The JV will buy the vessels from Equator Fund Ltd, owner of Great Bay Gas, for a total of $233m.

Once acquired, the vessels will continue to be managed by Luna Pool and be technically managed by Pacific Gas.

Mads Peter Zacho, Chief Executive Officer of Navigator, said: “Following the success of our Luna Pool collaboration with Greater Bay Gas Co. Ltd. (HK), the formation of this 60/40 Joint Venture is the natural next step in our strategic alliance, enabling us to benefit further from our combined strengths. The Joint Venture with Greater Bay Gas will result in a reduction in the average age of Navigator’s fleet and will allow us to take advantage of more efficient vessels, lowering emissions and offering improved economics to our customers. The Joint Venture is accretive as it further consolidates the handysize segment and puts us in a strong position for further growth and development in an evolving marketplace.”

Mr. Steven Xiao, Director of Greater Bay Gas, commented: “The Luna Pool collaboration has proven a great success and has paved the way to today’s Joint Venture. If the Luna Pool experience symbolized falling in love a few years ago, then we witness a happy marriage today. Naturally, following the Joint Venture we anticipate a successful journey together and with such holistic synergy, the Luna Pool is expected to be more productive to contribute to the global gaseous business community.”

TAGS: Asia Americas