Solvang and BlackRock Unite to Forge a New Era in Global Gas Transportation

According to a recent announcement, Solvang ASA has teamed up with BlackRock’s Global Infrastructure Partners (GIP) to create a new joint venture named Solvang Gas Carriers. This partnership will take over Solvang’s current fleet of 13 Very Large Gas Carriers (VLGCs), which are tailored for the transportation of liquefied petroleum gas (LPG) and ammonia. The venture aims to broaden its reach into various shipping sectors, including LPG, ammonia, ethane, and carbon dioxide (CO2), while Solvang will continue overseeing fleet operations.

Edvin Endresen, the CEO of Solvang ASA, emphasized the importance of this collaboration. He mentioned that they had been on the lookout for a financial ally to help fuel their growth ambitions.“With GIP joining us, we’re in a prime position to chase substantial long-term opportunities,” Endresen remarked. “This partnership enhances our capability to provide safe and efficient liquefied gas shipping solutions as global demands evolve.”

The timing couldn’t be better; demand for liquefied gas shipping is projected to rise significantly in the coming decade. This surge is largely attributed to an increasing shift towards LPG, ammonia, and ethane as cleaner fuel options across various sectors—commercially and residentially alike. Moreover, as industries focus more on carbon capture and storage technologies, ther’s expected growth in CO2 shipping needs.

Mark Florian from Global Infrastructure Partners noted that this was an exceptional chance to invest in a company leading an industry set for remarkable expansion soon—especially one supported by long-term contracts.

Solvang Gas Carriers aims not just for leadership but also sustainability within the shipping sector. Their VLGC fleet features cutting-edge propulsion systems designed to reduce emissions while enhancing fuel efficiency.Additionally, they are pioneering onboard technology aimed at capturing carbon emissions during transit.

Fearnley Securities played a crucial role as the exclusive financial advisor for this deal involving Solvang ASA.

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