Solvang, BlackRock’s GIP launch joint venture in gas carrier market

The newly established Solvang Gas Carriers is a 50-50 joint venture that will initially own Solvang’s modern fleet of 13 very large gas carriers, including seven currently under construction. The venture aims to expand further into the transport of LPG, ammonia, ethane and carbon dioxide (CO2). Solvang, which is also engaged in onboard carbon capture and storage technologies, will continue to operate the fleet.

The partners believe the demand for liquefied gas shipping is set to grow significantly over the next decade, driven by increasing global use of LPG, ammonia and ethane as cost-effective, lower-carbon energy sources and industrial feedstocks. Additionally, they highlighted CO2 shipping is expected to expand rapidly in line with the growth of the carbon capture and storage industry.

The transaction is expected to close in Q2 2025. Fearnley Securities acted as the sole financial advisor to Solvang.

Strategic growth platform

Solvang chief executive Edvin Endresen called the partnership a key milestone in the company’s long-term growth strategy, “We have actively sought a strategic financial partner since our delisting in 2018, and with this joint venture, Solvang is well-positioned to pursue large-scale, long-term opportunities”.

GIP partner Mark Florian emphasised the investment’s growth potential, “This was a unique opportunity to invest in a company at the forefront of an industry poised to see significant growth over the next few years, with a business model underpinned by long-term contracts”.

Solvang is a privately owned shipping company operating a fleet of 20 vessels, with seven newbuilds scheduled for delivery through 2027. GIP is a global infrastructure investor focused on acquiring, owning and operating assets in the energy, transport, digital infrastructure, water and waste management sectors.