Eletson Holdings Inc. (Eletson) yesterday announced the formation of a joint venture with funds managed by Blackstone Tactical Opportunities (Blackstone) to create Eletson Gas, a $700 million liquefied petroleum gas (LPG) shipping company. Eletson Gas also announced the signing of newbuilding contracts for eight vessels.
Five 12,000 cbm ethylene-capable semi refrigerated (semi ref) vessels were ordered from Korea’s Hyundai Mipo Dockyard and three 22,000 cbm ethylene-capable semi ref vessels from China’s Sinopacific Offshore & Engineering.
Additionally, Eletson Gas holds options for two additional 22,000 cbm vessels at Sinopacific.
All eight new-build vessels are scheduled for delivery in 2015 and early 2016.
As part of the agreement, Eletson will contribute its existing fleet of five medium-size gas carriers, and Blackstone will provide equity capital to finance the growth of the company through the construction of new-build vessels as well as through the acquisition of existing vessels.
Operating and technical management of the Eletson Gas fleet will be provided by Eletson.
Press Release, October 23, 2013