Stolt-Nielsen buys out Golar LNG stake in Avenir LNG

Bermuda-based Golar LNG is selling its shares in a company it co-founded, Avenir LNG, to shipowning and maritime operations conglomerate Stolt-Nielsen Gas for approximately US$40M. 

Golar said the transaction is expected to complete Q1 2025, subject to fulfilment of the conditions under the share purchase agreement.

Golar is retaining its 25% stake and debt-holdings in the Avenir LNG spin-off company, Higas, that is the asset-holder for the HIGAS LNG storage terminal in Sardinia, Italy. Higas was spun off from Avenir LNG in October 2024. 

Golar chief executive Karl-Fredrik Staubo commented, “The sale of Golar’s shareholding in Avenir LNG is in line with our strategy to focus on expanding our market-leading FLNG position. Golar is proud to have founded Avenir LNG into one of the largest small-scale LNG shipping companies globally alongside our partners Stolt Nielsen and Höegh. Following the sale of Hygo Energy Transition Ltd in 2021, our Avenir LNG investment was no longer deemed a core asset of Golar’s portfolio. We wish the Avenir LNG team and Stolt-Nielsen all the best for the future development of Avenir.”

In early October 2024, Avenir LNG launched a plan to raise US$50M and list on the Euronext Growth Oslo stock exchange, while divesting from the HIGAS LNG terminal. At the time, Avenir LNG managing director Jonathan Quinn said the company’s strategic shift was based on a maritime market shift toward LNG as a fuel.

“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,” he said.

As of end October 2024, the book value of HIGAS was US$40.5M (on a 100% basis), of which US$24.7M was shareholder loans and US$15.8M shareholders equity.