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

Core Viewpoint - Navigator Holdings Ltd. has successfully completed the expansion of its ethylene export terminal joint venture, enhancing its capacity to meet growing demand for ethylene and ethane exports [1][2][6]. Expansion Project - The Expansion Project at Morgan's Point was completed on time and within budget by late December 2024 [2]. - The project is expected to increase ethylene export capacity by at least 550,000 tons to a total of 1.55 million tons per year starting in 2025, with potential growth to 3.2 million tons per year in the future [2]. - The instantaneous ethylene refrigeration capacity will triple from 125 tons per hour to 375 tons per hour, allowing for greater flexibility and potential for additional capacity based on demand [2]. - The existing 30,000 ton refrigerated tank will continue to facilitate loading vessels at a rate of 1,000 tons per hour [2]. - An increased and extended offtake agreement has been signed with the largest offtaker, with additional volumes expected to start in Q1 2025 [2]. Acquisition of Ethylene Carriers - The company has agreed to acquire three handysize ethylene carriers for a total price of $83.9 million, which will support the expansion project [1][3]. - The vessels, with a capacity of 17,000 cubic meters each, are expected to be delivered between February and May 2025 and will operate in the spot market shortly after delivery [4]. - The acquisition will be financed through a combination of cash on hand and new debt, without issuing new capital [4]. Fleet Expansion - Following the acquisition, Navigator Gas will operate a fleet of 59 vessels, with 28 being capable of transporting ethylene and ethane [5]. - The company plays a crucial role in the liquefied gas supply chain, connecting energy companies, industrial consumers, and commodity traders [7]. Market Outlook - The CEO of Navigator Gas anticipates that demand for competitively priced US ethane and ethylene will continue to rise in the coming years, positioning the company to benefit from its expanded capabilities and infrastructure [6]. - The investments made are expected to be accretive to earnings in 2025 and beyond [6].