HANDYSIZE gas carrier specialist Navigator Gas has agreed to acquire three German-built handysize ethylene carriers for $83.9m, the company said on Tuesday.

The New York-listed company also announced that the expansion of the Morgan’s Point ethylene export terminal in Texas, which it jointly owns with Enterprise Product Partners, has concluded “in time in late-December 2024 and within budget”.

The handysize gas carrier trio is slated for delivery between February and May 2025.

Navigator said the acquisition will complement the ethylene terminal’s increased export capacity.

“Future demand for competitively priced US ethane and ethylene is likely to continue its upward trajectory in the coming years,” said Navigator chief executive Mads Peter Zacho.

“The ethylene export terminal expansion, and the addition of three handysize ethylene carriers to our fleet, provides us with key capabilities and infrastructure to meet that growing demand. With the most recent offtake agreement set to boost throughput in the near term, together with the additional vessels, we expect our investments to be accretive to earnings in 2025 and beyond.”

Navigator announced the terminal’s expansion in November 2022.

The project’s completion is expected to increase the terminal’s annual capacity by at least 550,000 tonnes to 1.55m tonnes, and “potentially up to a total of 3.2m tonnes per year in the coming years”, Navigator said.

The acquisition of the three vessels will be financed using cash-on-hand and new debt. The transaction is subject to customary closing conditions.