Stolt-Nielsen sets up small-scale LNG unit

Norwegian-listed shipping company Stolt-Nielsen said its unit, Stolt-Nielsen Gas set up Avenir LNG, a unit to focus on the development of small-scale LNG supply chain.

The unit will focus on serving “stranded demand” where off-the-grid customers lack access to natural gas.

Earlier in May, Stolt-Nielsen Gas contracted Keppel Sigmarine to build two 7,500-cbm liquefied natural gas carriers (LNG), with options to purchase three additional similar ships, in a contract valued at $80 million.

The newbuildings would be deployed, at least in part, in the supply chains serving these projects.

SNG has negotiated a Heads of Agreement with an oil major with the intention to charter the first ship for trading in the Mediterranean. The second ship is expected to trade in Northern Europe, Stolt-Nielsen said.

The two vessels are scheduled for delivery in the second and third quarters of 2019.