Stolt-Nielsen moves to consolidate small-scale LNG supply 

Stolt-Nielsen Limited has moved to consolidate its position in the small-scale LNG supply sector with an agreement to acquire additional shares in Avenir LNG Limited. The deal will see Stolt-Nielsen increase its ownership in Avenir LNG to 94.37% following the purchase of shares from Golar LNG Limited and Aequitas Limited. Completion is expected in 2025, subject to the fulfilment of conditions set out in the agreement. 

Avenir LNG was established in 2018 to develop small-scale LNG logistics, offering bunkering and supply services for customers unable to access large-scale infrastructure. The company operates five small-scale LNG bunkering and supply vessels and has two newbuildings under construction. With its focus on LNG distribution for shipping, industry, and power generation, Avenir LNG has sought to position itself within the evolving marine fuel landscape and the expansion of decentralised LNG networks.

“The deal comes at a time of consolidation in the small-scale LNG sector”

Stolt-Nielsen Limited chief executive, Udo Lange, said the company was pleased to be increasing its investment in Avenir LNG. He described the acquisition as a strategic move that would strengthen Stolt-Nielsen’s position in LNG and reflect its commitment to providing “more sustainable energy solutions for the maritime, industrial, and power generation markets.” He added that the company was optimistic about the opportunities that lay ahead and the impact the acquisition would have on its growth trajectory. 

Avenir LNG managing director, Jonathan Quinn, described the agreement as marking a new stage in the company’s development. He said the founding shareholders had played an essential role in supporting Avenir LNG’s growth since its launch, helping it to become established in the small-scale LNG sector. With increased backing from Stolt-Nielsen, he said, Avenir LNG would have greater flexibility in pursuing its growth strategy. 

The deal comes at a time of consolidation in the small-scale LNG sector, with operators looking to strengthen their positions amid shifting market dynamics. Small-scale LNG has gained ground as an alternative to conventional marine fuels and as a solution for off-grid energy supply. However, the sector remains highly fragmented, with many companies competing for market share in bunkering, regional LNG distribution, and industrial supply. 

Avenir LNG has focused on LNG bunkering as a core part of its business, providing fuel to vessels operating in emissions control areas and those transitioning to lower-carbon energy sources. The company’s fleet enables ship-to-ship transfers and the supply of LNG to small-scale terminals, a market that has grown as shipping companies seek alternatives to oil-based fuels in response to tightening emissions regulations. 

Demand for small-scale LNG has also been driven by industries and power generation projects that lack access to large-scale LNG terminals. The ability to distribute LNG in smaller parcels has allowed operators to serve remote locations, supporting energy transition efforts in regions with limited gas infrastructure. This has created opportunities for companies involved in the production, transportation, and regasification of small-scale LNG, although competition has intensified as more players enter the market. 

Stolt-Nielsen’s decision to consolidate its holding in Avenir LNG follows a broader trend of larger companies acquiring greater control over small-scale LNG assets. In a sector where economies of scale remain a challenge, financial backing from a parent company with deeper resources can provide greater stability and investment capacity.