Ocean Yield has acquired a dual-fuel liquid ethylene gas (LEG) carrier from Navigator Gas, which will be chartered back to the seller.
The 37,300-cbm Navigator Aurora (built in 2016) was sold to the Oslo-listed shipowner for $69.75m, net of a seller's credit, a filing said on Thursday.
The acquisition includes a 13-year bareboat charter to a company 100% owned and guaranteed by Navigator, which has purchase options during the period.
The Navigator Aurora is operating on a sub-charter to the European chemical group Borealis, under which it will carry ethane from the US East Coast to Europe until December 2026.
VesselsValue.com estimates the ship's current market value at $61.93m, excluding its employment contracts.
Dual-fuel capabilities
The vessel's propulsion and electrical systems are designed to use LNG as fuel as well as conventional fuel.
Further, the vessel is currently undergoing a project to also use ethane as fuel.
Ocean Yield's chief executive Lars Solbakken said his company was pleased to further diversify its fleet.
"Including this vessel, Ocean Yield will have three vessels that can use ethane as fuel, reducing emissions compared to vessels that utilise conventional fuel," he said.
Once the Navigator Aurora is delivered, Ocean Yield will have three LEG carriers in its diverse fleet, one of which is under construction China and is scheduled for delivery in December.
The ship will be delivered to the buyer this month, subject to final documentation.
Navigator's cash position
Navigator Gas last month asked holders of $100m in Norwegian bonds due in 2022 to grant it relief on an interest coverage ratio and to extend a restriction on paying dividends.
The standstill aims to tide Navigator over until an ethylene export terminal is completed in Texas later this year.
The New York-traded, London-based gas carrier owner reported a $7.7m loss after the close Thursday, more than double the $3.1m loss reported for the same period last year.
Revenue dropped slightly year-over-year to $73.2m from $73.6m.
