Avenir LNG has announced that it is divesting from the HIGAS LNG storage terminal in Sardinia to operate as a pure play LNG shipping and trading company.
The company said that this is part of a strategic refocus which will also see it seek a listing on Euronext Growth Oslo this year.
Avenir LNG plans to raise approximately $50 million in new equity to finance two newbuild 20,000 cubic metre (cbm) LNG bunker and supply vessels announced in April this year, which are scheduled to be delivered in 2026 and 2027. The company also signalled that it is considering increasing the equity raise to support further fleet expansion. It currently owns and operates a fleet of five LNG bunker and supply vessels in addition to the two vessels under construction,
Jonathan Quinn, Managing Director at Avenir LNG, said that the strategic refocus will improve operational efficiency and competitiveness, and enable the company to leverage favourable market conditions by growing the fleet.
‘With the LNG fuelled fleet set to grow from ~400 vessels in 2023 to over 1,000 vessels by 2028, demand for bunker vessels is set for strong growth over the next decade. This is a timely opportunity to refocus and consolidate the Company’s strategy into shipping and trading by divesting from HIGAS,’ Quinn said.
The company is planning to divest its ownership of the HIGAS terminal, of which it was the sole owner since 2022, to three of its existing shareholders: Stolt-Nielsen, Golar LNG and Höegh Evi. The transaction is subject to customary approvals and agreement on final legal documentation.
Avenir LNG is currently registered on Euronext NOTC, a marketplace for unlisted shares.