Navigator Holdings Ltd. announced the completion of the expansion of its existing ethylene export terminal joint venture with Enterprise Products Partners and the acquisition of three handysize ethylene carriers.
As announced, the expansion project of the terminal was completed on time in late-December 2024. Going forward, the flex train is expected to increase ethylene export capacity at Morgan’s Point by at least 550,000 tons to 1.55 million tons per year starting in 2025, and potentially up to a total of 3.2 million tons per year in the coming years.
Furthermore, the expansion project is anticipated to triple the current instantaneous ethylene refrigeration capacity at Morgan’s Point from 125 tons per hour to 375 tons per hour, providing increased flexibility for customers and the potential to add additional capacity based on demand.
The expanded capacity will utilize the export terminal joint venture’s existing 30,000 ton refrigerated tank which will continue to facilitate loading vessels at Morgan’s Point at 1,000 tons per hour. Additionally, the joint venture has signed an increased and extended offtake agreement with its largest offtaker with the additional volumes starting in the first quarter of 2025.
Future demand for competitively priced US ethane and ethylene is likely to continue its upward trajectory in the coming years. The ethylene export terminal expansion, and the addition of three handysize ethylene carriers to our fleet, provides us with key capabilities and infrastructure to meet that growing demand.
…said Mads Peter Zacho, CEO, Navigator Gas.
To further support the expansion project by increasing Navigator Gas’ fleet of ethylene capable vessels, the company has also entered into agreements with an unrelated third party to acquire three German-built 17,000 cubic meter capacity vessels.
Delivery of the vessels is expected to take place between February and May 2025, at the latest. Following the transaction completion, Navigator Gas will own and operate a fleet of 59 vessels, 28 of which will be ethylene and ethane capable.