Odfjell said it has entered into an agreement with affiliates of Breakwater Capital and Oak Hill Advisors to form a liquefied petroleum gas and ethylene (LPG/E) shipping joint venture.
Further, Odfjell announced that it has exercised its option for construction of four 22,000 cbm LPG/E gas carriers at Nantong Sinopacific, scheduled for delivery between September 2016 and June 2017. The contract price in total is in the region of USD 200 million.
In the LPG/E gas carrier segment, Odfjell currently owns and operates two 2008- built 9,000 cbm vessels, has four 17,000 cbm vessels under construction at Nantong Sinopacific, scheduled for delivery between October 2015 and May 2016, and the option for four vessels now being exercised.
In accordance with the agreement, Breakwater and Oak Hill Advisors have jointly agreed to invest approximately $50 million as consideration for a 50.0% equity interest in Odfjell’s LPG/E business. Further, Odfjell and the Partners have each agreed to commit approximately $50 million to finance the growth of the joint venture.