Navigator Holdings, the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, has joined hands with Enterprise Products Partners on expanding their existing ethylene export terminal joint venture at Morgan’s Point, Texas on the Houston Ship Channel.
The developments making up the expansion project will be owned by Navigator Ethylene Terminal LLC, a joint venture that is 50/50 owned by Navigator and Enterprise.
Navigator expects that the expansion will provide significant additional ethylene refrigeration capacity for the joint venture, creating an opportunity for additional revenue through increased volumes.
“Navigator expects to make cash contributions to the export terminal joint venture for construction commencing in the first quarter of 2023 and ending in 2024, at which time the expansion project is expected to begin commercial service,” the company said.
Ethylene throughput for the third quarter of 2022 at the Ethylene Export Terminal totaled 189,142 metric tons, a reduction from the 268,444 and 267,110 metric tons throughput in Q2 and Q1 2022, respectively.
According to Navigator, the reduction was expected as the third quarter is normally the seasonally weakest period of the year. The reduction was attributed to an economic slowdown in Europe while Asian demand also remained muted due to ongoing COVID restrictions.
“Looking ahead to the fourth quarter of 2022, October 2022 volumes significantly increased to 104,000 tons with another 79,000 tons expected for November, primarily as Asia reopens resulting in multiple cargoes being transported to the Far East for the first time since the second quarter of 2022,” the company said.
The announcement comes on the back of Navigator’s new joint venture deal with Greater Bay Gas Co. Ltd., signed two months ago with the intention to acquire five ethylene vessels over the next fifteen months.
Source: World Maritime News
