Navigator Gas boosts ethylene carrier portfolio amid growing demand

On 19 February, the shipowner announced the completion of its acquisition of three Handysize liquefied ethylene gas carriers, having already taken delivery of the first vessel. Navigator Hyperion, formerly known as Gaschem Adriatic, was built in 2010 and has a carrying capacity of 17,000 m³.

This is the first of three vessels Navigator Gas has committed to acquiring. The other two are believed to be 17,000-m³ Gaschem Antarctic and Gaschem Pacific, built in 2010 and 2009, respectively. The company has secured the trio for approximately US$84M.

According to Navigator Gas, the remaining two vessels are expected to be delivered between February and May 2025, with all three ships set to operate in the spot market upon or shortly after delivery.

Navigator Gas will finance the acquisition using cash on hand and proceeds from a facility agreement with Nordea Bank.

Ethylene expansion

Navigator Gas stated these newly acquired vessels will complement the increased export capacity at its Morgan’s Point ethylene export terminal (Houston), a 50/50 joint venture with Enterprise Products Partners LP.

The company announced last month that the terminal’s expansion project was completed in late December 2024. As a result, ethylene export capacity is expected to increase by at least 550,000 tonnes, reaching 1.6M tonnes per year in 2025, with the potential to scale up to 3.2M tonnes per year in the coming years.

"Future demand for competitively priced US ethane and ethylene is likely to continue its upward trajectory in the coming years," noted Navigator Gas chief executive Mads Peter Zacho at the time.

Growing orderbook

This move in the secondhand vessel market comes just weeks after Navigator Gas expanded its orderbook. Last November, the company disclosed it had exercised options for the construction of two additional 48,500-m³ liquefied ethylene gas carriers at China’s Jiangnan Shipyard, with deliveries scheduled through early 2028.

The newbuilds will be capable of transporting a wide range of gas products, from petrochemicals such as ethylene and ethane, to LPG and clean ammonia.

With these two additional vessels, Navigator Gas now has four vessels under construction.

Navigator Gas’ fleet consists of 59 semi- or fully-refrigerated liquefied gas carriers, 28 of which are ethylene- and ethane-capable.