Small-scale LNG takes the stage: Avenir LNG's Oslo listing

Avenir LNG Ltd has announced a strategic refocus that will see the company reposition itself as a pure-play shipping and trading entity. Central to this move is Avenir’s decision to explore a potential listing on the Euronext Growth Oslo market, alongside plans to raise approximately US$50M in new equity to finance fleet expansion.

This development marks a turning point for the company, as it divests its ownership in the HIGAS LNG storage terminal in Sardinia to three of its major shareholders: Stolt-Nielsen, Golar LNG and Höegh Evi. This divestment will allow Avenir to narrow its focus on small-scale LNG shipping and trading.

As part of this shift, Avenir intends to capitalise on market opportunities stemming from increased demand for LNG bunkering vessels, which the company believes will grow from approximately 400 in 2023 to over 1,000 by 2028, driven by evolving environmental regulations and the need for cleaner marine fuels.

The company is well positioned to benefit from this trend, having established itself as a provider of LNG bunkering services, which are crucial for supporting the maritime sector’s transition towards lower emissions.

Reflecting on Avenir’s forward-looking stance in the industry, Avenir LNG commercial director of LNG bunkering, Jan Schubert will present on A bunkering vessel owner’s perspective: LNG’s role in our mid- to long-term plans at the LNG Shipping & Terminals Conference 2024 in London on 12-13 November 2024. His presentation is expected to provide deeper insights into Avenir’s strategic direction and the growing role of LNG in the shipping industry.

Avenir’s listing on Euronext Growth Oslo is intended to expand its shareholder base and increase the liquidity of its shares. The company’s plan to raise US$50M will fund the construction of two newbuild 20,000-m³ LNG bunker and supply vessels, which were initially announced in April 2024.

In addition, Avenir is considering an increase in the equity raise to support further fleet expansion, reflecting its commitment to scaling its operations in line with market demand.

The newbuild vessels are expected to enhance Avenir’s capacity to provide efficient and sustainable LNG supply solutions, further solidifying its role within the growing LNG-fuelled fleet.

Avenir LNG managing director Jonathan Quinn commented on the company’s strategic shift, “With the LNG-fuelled fleet set to grow in the coming years, the demand for bunker vessels is expected to rise. This is the right time for Avenir to refocus its strategy on shipping and trading. The divestment from HIGAS will enhance our position as a leading owner of LNG bunker vessels and allow us to streamline our operations to better align with market opportunities.”

Avenir’s decision to list on Euronext Growth Oslo follows its current registration on the Euronext NOTC, a marketplace for unlisted shares. The company has engaged Clarksons Securities and DNB Markets, a part of DNB Bank, as financial advisors for the listing process.