Navigator Holdings announces additional details for expansion project

Navigator Holdings (NVGS) announces additional details regarding its expected participation in a capital project, previously announced on November 15, 2022, under its existing ethylene export terminal joint venture with Enterprise Products Partners (EPD) at Morgan’s Point near Houston. The Expansion Project is expected to increase ethylene export capacity by at least 550,000 tons per year, and up to 2 million tons per year. Further, the Expansion Project is expected to triple the current instantaneous ethylene refrigeration capacity at Morgan’s Point from 125 tons per hour to 375 tons per hour, providing increased flexibility for customers and the potential to add additional capacity based on demand. Potential total ethylene export capacity at Morgan’s Point is expected to be more than 3 million tons per year by the end of 2024. The expanded capacity will utilize the Joint Venture’s existing 30,000 ton refrigerated tank which will continue to facilitate loading vessels at the berth at 1,000 tons per hour. Navigator expects to make an aggregate of approximately $120-130 million in cash contributions to the Joint Venture, commencing in the first quarter of 2023 and ending in the fourth quarter of 2024, to pay Navigator’s portion of the anticipated cost of the Expansion Project, which the Company expects to fund using a combination of cash on hand and additional debt financing. The timing and expected completion date of the Expansion Project is subject to a number of risks and uncertainties commonly associated with this type of project.