LONDON, October 1, 2018 - Stolt-Nielsen Limited (Oslo Børs: SNI), Golar LNG Ltd and Höegh LNG Holdings Ltd. announced today a combined investment commitment of $182 million in Avenir LNG Ltd. to pursue opportunities to deliver LNG to areas of stranded demand, as well as the development of LNG bunkering capabilities. The investment will be contributed as cash and equity-in-kind and will fund the construction of six small-scale LNG carriers, a small-scale storage terminal and regasification facilities.
Avenir LNG was formed by Stolt-Nielsen in 2017 to provide LNG to markets lacking access to natural gas pipelines. With this joint investment, Stolt-Nielsen will consolidate all its LNG activities into Avenir, including four LNG new buildings on order at Keppel Singmarine in Nantong, China and the joint-venture LNG terminal and distribution facility to be constructed in the port of Oristano, Sardinia. Avenir plans to source and ship LNG to the terminal using small LNG carriers, and to distribute the LNG in trucks and through regasification into local network grids. In addition, Avenir plans to order two further small-scale LNG carriers.
Commenting on the transaction, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said, "The combination of Stolt-Nielsen's logistics capabilities and our partners' experience in LNG carriers, FSRUs and FLNGs positions Avenir as an emerging leader in small-scale LNG logistics for the power, bunkering, trucking and industrials markets. With the implementation of the IMO's 2020 emissions regulations approaching, demand for LNG as a cleaner, low-sulphur marine fuel is increasing. Each of the LNG newbuildings is designed to perform safe and efficient ship-to-ship LNG bunkering, which Avenir LNG plans to introduce at key strategic ports."
Stolt-Nielsen Limited remains the largest shareholder of Avenir LNG Ltd with ownership of 50%. Golar LNG Ltd and Höegh LNG Holdings Ltd. each hold a 25% share. Subsequent to the initial capital raised, Avenir LNG intends to raise an additional $10 million through strategic investors, with plans to register on the NOTC before the end of 2018.
For additional information please contact:
Jens F. Grüner-Hegge
Chief Financial Officer
UK +44 (0) 20 7611 8985
Head of Communications
UK +44 (0) 20 7611 8926
About Stolt-Nielsen Limited
Stolt-Nielsen Limited is a leading global provider of integrated transportation solutions for bulk liquid chemicals, edible oils, acids, and other speciality liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-Nielsen Gas develops opportunities in LPG and LNG shipping, storage and distribution. Stolt-Nielsen Limited is listed on the Oslo Stock Exchange.
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