Amon Maritime announced that it has entered into a joint venture with Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers.

Pursuant to the Joint Venture, Navigator will acquire approximately 80% of the joint venture company, Navigator Amon Shipping AS, of Norway, with Amon Maritime holding approximately 20%, subject to the investment terms and conditions. The Joint Venture intends to construct two new 51,530 cubic meter capacity ammonia fuelled liquefied ammonia carriers (the “Vessels”), which will also be capable of carrying liquefied petroleum gas.

The Joint Venture has entered into contracts with Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. to build the Vessels, with deliveries scheduled to take place in June and October 2028 respectively, at an average price of $84 million per vessel. Importantly, each of the vessel projects were awarded a NOK 90 million (approx. $9 million) investment grant from the Norwegian government agency Enova. It is expected that the Joint Venture will finance the majority of the purchase price of the Vessels through commercial bank finance, with the remainder sourced from capital contributions from Navigator and Amon Maritime. Navigator expects to finance its share of the capital contributions from available cash resources, and these investments are expected to be accretive to the Company’s earnings.

Once delivered to the Joint Venture, subject to customary conditions, each of the Vessels will be operated under the Joint Venture pursuant to long-term time charters with a blue-chip industry leader, each for a period of five years from delivery.

Mads Peter Zacho, Chief Executive Officer of Navigator, said:

“Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy. These modern vessels will be equipped with newly developed technologies that comply with present and future environmental regulations and will thereby deliver great value to both our customers and our shareholders.” 

André Risholm, Chief Executive Officer of Amon Maritime, commented:

“Amon Maritime was founded with a vision to lead the green shift in shipping by pioneering the use of ammonia fuel. We are proud to realize this vision alongside our forward-looking and competent partners in Navigator Gas, serving ammonia-powered transportation services to market leaders. We are very satisfied to expand and strengthen our relationship with Navigator Gas further by constructing and operating these vessels.”