Navigator Gas secures financing for two ammonia-capable carriers

Navigator Amon Shipping has secured a $121.8 million loan to finance two ammonia-capable gas carriers under construction in China.

IMAGE: STS ammonia transfer between Navigator Global and the Green Pioneer at the outer anchorage of Port Dampier. Yara Clean Ammonia

Navigator Amon Shipping is a joint venture between LPG vessel operator Navigator Gas and Norwegian shipping company Amon Maritime.

The 51,000-cbm gas carriers will be designed to transport liquefied ammonia as cargo and use it as propulsion fuel. They will also be capable of carrying LPG as cargo.

The vessels are being built by Chinese shipbuilder Nantong CIMC Sinopacific Offshore & Engineering and are scheduled for delivery through 2028.

The loan facility, secured from ING Bank, Société Générale and Oversea-Chinese Banking Corporation, covers up to 70% of the vessels' construction costs.

The order reflects a broader industry focus among ammonia carrier operators towards using cargo ammonia as a marine fuel.

Since these vessels are already designed to transport and handle ammonia safely, operators can use cargo ammonia for propulsion while drawing on existing expertise in handling the fuel.

DNV's alternative fuel database lists 42 ammonia-capable vessels currently on order towards 2030, which includes 19 gas carriers.

Belgian shipping firm Exmar has ordered four midsized gas carriers from South Korea's HD Hyundai. Two have already been delivered and remaining two are due by next year.

Exmar told ENGINE that the newbuild Antwerpen's ability to carry ammonia as cargo has meant insurance and limited ammonia bunkering infrastructure have not posed significant barriers to the vessel’s deployment.

By Konica Bhatt

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