Navigator Holdings Ltd. announced it has agreed four 12 month time charter contracts with Mitsui & Co. Energy Trading Singapore Pte. Ltd. (Mitsui) to be used for Pembina Pipeline Corporation’s (“Pembina”) new LPG export facility at Prince Rupert, British Columbia, Canada. The four semi-refrigerated handysize vessels are expected to commence their charters to Mitsui from the second half of May 2021.
Navigator’s semi-refrigerated vessels are capable of loading ambient propane from the rail-supplied export terminal, negating the need for capital intensive on-shore chillers. The vessels will provide an essential part of the Canadian LPG value chain from production to final customer.
Navigator will connect the last leg of this value chain by delivering safe, reliable and efficient seaborne transportation services connecting the export terminal to customers across the Pacific Ocean. The vessels, together with Pembina’s new export terminal in Prince Rupert, and Mitsui’s trading network in the global LPG market, will enable Canadian produced LPG to be exported outside the traditional North American markets.
Dr Harry Deans, Chief Executive Officer at Navigator said: “This exciting development demonstrates that Navigator is perfectly placed to facilitate Canadian hydrocarbons reach novel global markets. I am proud to see that our collaborative, transparent and honest approach over the last three years have resulted in, not only a successful outcome of the project, but a closer partnership between the participating companies.”
Oeyvind Lindeman, Chief Commercial Officer at Navigator commented: “We are truly excited to finally sign this agreement after many years of assisting the various key stakeholders through sharing our know-how in maritime gas transportation. It is a remarkable project highlighting the advantages of semi-refrigerated vessels. Our capabilities played a key role in reducing capital requirements and project start-up costs as our vessels’ own refrigeration systems negates the need for on-shore chillers. What is even more interesting is that the entire logistics, from the processing plants in Alberta, the unit rails to the terminal in British Columbia, and the maritime section from the export terminal to international customers, can be price competitive compared to Very Large Gas Carriers’ main route between U.S. Gulf and Asia.”
Mitsui’s spokesperson said: “We are proud to be part of an entirely new trade between North America and international customers. Together with our partners Pembina, Navigator and Fearnleys Shipbrokers, we have overcome logistical challenges and have found a means to create a ‘pipeline’ from production in Alberta all the way to our end users. This would not be possible without the expertise, competence and ingenuity of our partners.”
Source: Navigator Holdings Ltd.