Small-scale LNG company Avenir LNG Ltd marked a milestone in the construction of the world’s largest LNG bunker vessels on 25 January by making its initial progress payments on the two 20,000-m3 ships under construction at Sinopacific Offshore Engineering in Nantong, China.
Avenir LNG signed the contract for the two LNG bunker vessels (LNGBV) in Q4 2018 and made the first progress payments of US$11.2M to the shipyard, according to regulatory filings by Stolt-Nielsen Limited, which has a 45% stake in the company through its investment arm Stolt-Nielsen Gas.
Other major investors in Avenir LNG are Golar LNG and Höegh LNG Holdings Limited, who each hold 22.5% stakes, and institutional and private investors, who hold the remaining 10% interest.
Avenir LNG is also building two dual-fuel 7,500-m3 LNGBV with Keppel Singmarine in Nantong that will be delivered in late 2019 and early 2020. The total cost for both vessels is approximately US$80M, including site team costs and capitalised interest. On 23 August, Avenir LNG exercised options for two more 7,500-m3LNGBVs with Keppel Singmarine at a total cost of US$76M that will be delivered in Q3 and Q4 2020, respectively.
Listed on the Norwegian OTC since 14 November 2018, Avenir LNG plans to become a leading provider of small-scale LNG for the power, ship bunkering, trucking and industrial markets.
Stolt-Nielsen, Golar LNG and Höegh LNG announced a combined investment of US$182M in Avenir LNG in 1 October 2018. The investment, made up of cash and equity-in-kind, is partly funding the construction of the six LNGBVs and an 80% ownership in an LNG terminal and distribution facility under development in the Italian port of Oristano, Sardinia.