Navigator Gas, Amon Maritime launch joint venture with order for two ammonia carriers

The entity, named Navigator Amon Shipping, will own and operate two ammonia-fuelled liquefied ammonia carriers.

The Norwegian joint venture – 80% owned by Navigator Gas and 20% by Amon Maritime – has signed contracts with Nantong CIMC Sinopacific Offshore & Engineering Co in China for the construction of two 51,530-m³ vessels. Both ships, scheduled for delivery by October 2028, will also be capable of transporting LPG.

Each vessel will be deployed on a five-year long-term time charter with a blue-chip industry leader, commencing upon delivery.

Navigator Amon Shipping will pay an average price of US$84M per vessel. According to the official announcement, each project has secured a US$9M investment grant from the Norwegian government agency Enova.

The majority of the purchase price will be financed through commercial bank loans, while the remainder will come from capital contributions by Navigator and Amon Maritime. Navigator intends to fund its share using available cash resources.

Ammonia as strategic choice

Navigator chief executive Mads Peter Zacho described the addition of the ammonia carriers as a “strategic enabler” in responding to the rising demand for a sustainable fuel source.

Navigator is currently the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, with 58 semi- or fully-refrigerated ships, 27 of which are capable of transporting ethylene and ethane.

Amon Maritime chief executive André Risholm commented on the joint venture’s alignment with Amon’s founding purpose, “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, serving ammonia-powered transport services to market leaders.”

Founded in 2019 and headquartered in Sandefjord, Norway, Amon Maritime aims to become the world’s first carbon-free shipping company.

Riviera recently reported that Amon Maritime secured a US$25M grant from Enova to support the construction of two ammonia-powered bulk carrier newbuilds. The vessels are scheduled for delivery by 2029 and will, according to Amon, form part of a new generation of zero-emissions bulk carriers.