Norway’s Odfjell enters into LPG/ethylene shipping joint venture

16 May 2014 09:42 Source:ICIS News

SINGAPORE (ICIS)--Odfjell is partnering with Chicago trading firm Breakwater Capital and UK investment company Oak Hill Advisors for its liquefied petroleum gas and ethylene (LPG/E) shipping business, the Norwegian logistics company said on Friday.

Breakwater Capital and Oak Hill Advisors will jointly invest about $50m for 50% interest in Odfjell's LPG/E business, it said.

“Odfjell and the partners have each agreed to commit approximately $50m to finance the growth of the joint venture,” the company said.

In the LPG/E carrier segment, Odjell currently owns and operates two 9,000 cubic-metre (cbm) vessels built in 2008, and four 17,000 cbm vessels under construction at Nantong Sinopacific, scheduled for delivery between October 2015 and May 2016.

The company said that it has decided to exercise its option to have four 22,000 cbm LPG/E gas carriers built for about $200m. The new vessels are due for delivery between September 2016 and June 2017.

Its joint venture agreement with Breakwater Capital and Oak Hill Advisors is still subject to execution of the shipbuilding contracts related to the vessels, among others. Completion of the joint venture deal is expected within the next three months, Odfjell said.

By Yaw Min Jie