Stolt-Nielsen Limited and Golar LNG Limited announced today the formation of a 50/50 joint venture to pursue opportunities in small-scale LNG production and distribution.
Stolt-Nielsen Limited has invested in Golar LNG through open-market purchases, representing an ownership stake of approximately 2.3% in the company.
As informed, the joint venture between Golar and Stolt-Nielsen will draw upon the logistics and small-scale LNG assets controlled by Stolt-Nielsen and the ocean-based LNG midstream assets controlled by Golar to provide a fully integrated LNG logistics service to consumers of natural gas.
“A key element of Stolt-Nielsen’s long-term strategy is diversification that leverages our core skillsets, including shipping, storage and distribution. We targeted LNG as a growth market and entered into small-scale LNG liquefaction and logistics services in 2014, through our joint venture Stolt LNGaz.
“With our investment in Golar LNG we aim to develop further opportunities in the LNG space, targeting onwards distribution to off-the-grid customers, supported by Golar’s midstream ocean-based system,” said Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen Limited.
CEO of Golar Management, Gary Smith, commented: “As Golar continues to expand throughout the midstream LNG value chain we are excited to have a world class specialty shipping and terminal company like Stolt-Nielsen as a strategic investor and partner. Stolt-Nielsen’s core strengths in logistics and distribution are an excellent fit with Golar’s midscale LNG focus. We look forward to working with Stolt-Nielsen to continue to expand the reach of LNG to a wider array of smaller potential customers.”