Golar, Hoegh give Stolt-Nielsen's LNG venture investment boost

Stolt-Nielsen

01/10/2018 15:13

LONDON, Oct 1 (Reuters) - Liquefied natural gas (LNG)
shipping and terminal operators Golar  GLNG.O  and Hoegh
 HLNGH.OL  said on Monday they would invest about $50 million
into an LNG company set up last year by fellow Nordic firm
Stolt-Nielsen  SNI.OL .
    The investments aim to build Avenir LNG into an entity with
small LNG vessels and terminals that are expected to be
increasingly used in remote locations or to supply LNG as
vehicle or ship fuel.
    Small-scale LNG is a new frontier of the rapidly developing
industry which has been dominated by ever larger and more
complex multi-billion projects.
    "Avenir LNG intends to utilize the best-in-class
capabilities of its anchor investors to build a global presence
as the leading provider of small-scale LNG," Golar and Hoegh
said in a statement.
    "It will be among the first movers in this market with a
fleet of small-scale LNG carriers and terminals," they said.
    The two companies will invest $24.75 million each to receive
a 25 percent stake each in Avenir LNG. 
    They said the funds were part of a $182 million commitment
with Stolt-Nielsen to opportunities in small-scale LNG
"including the delivery of LNG to areas of stranded demand, the
development of LNG bunkering services and supply to the
transportation sector".
    Stolt-Nielsen will transfer all its LNG projects to Avenir
LNG, the statement said, which includes four small-scale LNG
carriers already on order as well as the development of an LNG
terminal in Sardinia, Italy.
        

 (Reporting by Sabina Zawadzki; Editing by Emelia
Sithole-Matarise)
 ((sabina.zawadzki@thomsonreuters.com; +44 207 542 4051;))