Stolt buys VLGC

Stolt buys VLGC

Stolt-Nielsen has purchased its first VLGC less than a month after making its debut in the sector with the long-term charter of a Yuyo Steamship vessel.
CEO Niels Stolt-Nielsen.
It has bought the 82,557-cbm Althea Gas (built 2003) from Iino Kaiun Kaisha of Japan, Stolt tells investors Thursday.
Oslo-listed Stolt has not put a price on the deal, believed to the first sale of a VLGC for a couple of years.
As TradeWinds weekly newspaper will report tomorrow Iino flatly rejected an offer of $45m for the vessel earlier this week.
A Stolt spokesperson refuses to discuss the price further, due to confidentiality clauses in the deal and the fear of banks seizing on the figure as a new benchmark for such tonnage.
A price of between $50m and $55m is considered realistic by observers, but the spokesman remains tight-lipped when this is put to him.
The vessel, which will be handed over early next year, will trade on the spot market.
“Locking into a long-term deal now is probably not something you want to do,” the spokesperson said.
Earlier this month we broke news of Stolt’s first foray into the VLGC sector with the three year charter of the 78,000-cbm Yuhsho (built 1999).
At the same time we reported the Althea Gas was being touted for sale, with sources suggesting the ship would fetch less than the $60m Iino paid for it as a newbuilding.
Stolt-Nielsen decided in 2007 to set up a gas-tanker company in anticipation of lower ship prices and rates.
Headed by Christian Andersen, the company has since been waiting for the right opportunity to take on ships.
Following its recent burst of activity in the sector, Stolt is guarded about further purchases.
“Hopefully we will be able to get one or two more on the table, but there is nothing else on the table as yet,” the spokesperson said.
By Andy Pierce in London