Navigator Gas Announces Completion of Morgan's Point Ethylene Export Terminal Expansion and Acquisition of Three Handysize Liquefied Ethylene Gas Carriers

Expansion Project - The Expansion Project of the ethylene export terminal joint venture at Morgan's Point, Houston, was completed on time in late-December 2024 and within budget [2] - The project is expected to increase ethylene export capacity by at least 550,000 tons to 1.55 million tons per year starting in 2025, with potential to reach 3.2 million tons per year in the coming years [2] - The instantaneous ethylene refrigeration capacity at Morgan's Point will triple from 125 tons per hour to 375 tons per hour, providing increased flexibility for customers [2] - The expanded capacity will utilize the existing 30,000 ton refrigerated tank, maintaining a loading rate of 1,000 tons per hour [2] - The Joint Venture has signed an increased and extended offtake agreement with its largest offtaker, with additional volumes starting in Q1 2025 [2] Fleet Expansion - Navigator Gas has agreed to acquire three handysize ethylene carriers with a total purchase price of US$ 83.9 million [1] - The vessels, each with a capacity of 17,000 cubic meters, are expected to be delivered between February and May 2025 [3][4] - The acquisitions will be financed through a combination of cash on hand and new debt, with no new capital issuance planned [4] - Upon completion of the transaction, Navigator Gas will own and operate a fleet of 59 vessels, 28 of which will be ethylene and ethane capable [5] Strategic Outlook - The CEO of Navigator Gas highlighted that future demand for competitively priced US ethane and ethylene is expected to continue growing [6] - The expansion of the ethylene export terminal and the addition of three handysize ethylene carriers are seen as key capabilities to meet this growing demand [6] - The investments are expected to be accretive to earnings starting in 2025 and beyond [6] Company Overview - Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers [7] - The company specializes in the seaborne transportation of petrochemical gases, including ethylene, ethane, LPG, and ammonia [7] - Navigator Gas owns a 50% share in an ethylene export marine terminal at Morgan's Point, Texas, through a joint venture [7] - The company plays a vital role in the liquefied gas supply chain, connecting energy companies, industrial consumers, and commodity traders [7]