Solvang ASA, a prominent name in liquefied gas shipping, and a fund managed by Global Infrastructure Partners (GIP), a part of BlackRock, have officially joined forces to establish a 50:50 joint venture. This strategic alliance aims to become a global leader in the liquefied gas shipping sector, focusing on the burgeoning markets for LPG, ammonia, ethane, and CO2 transportation.

The newly formed entity, Solvang Gas Carriers, will initially encompass Solvang’s modern fleet of 13 Very Large Gas Carriers (VLGCs). These vessels are specifically designed for the efficient and safe transport of liquefied petroleum gas and ammonia. Solvang will continue to oversee the operational management of the fleet, leveraging its extensive experience and proven track record in commercial and operational excellence.

Edvin Endresen, CEO of Solvang ASA, underscored the transformative nature of this partnership, describing it as a pivotal moment in the company’s long-term strategic vision. "We have actively sought a strategic financial partner to support Solvang’s continued growth and enable execution of larger-scale projects," stated Mr. Endresen. He emphasized that Global Infrastructure Partners (GIP), with its integration into BlackRock, brings an invaluable global network spanning shipping, energy, and infrastructure. This network, he noted, aligns seamlessly with Solvang’s ambitious long-term growth objectives. "With BlackRock’s GIP on-board, we are positioned to pursue large-scale, long-term opportunities. This strengthens our ability to deliver safe, reliable, and efficient liquefied gas shipping solutions at scale for an evolving global market," Endresen added, highlighting the enhanced capacity to meet future demands.

Mark Florian, Partner at Global Infrastructure Partners (GIP) and lead for the firm’s global mid-market infrastructure equity investment strategy, expressed enthusiasm for the collaboration. "We’re excited to partner with Solvang and its exceptional management team to accelerate the company’s leadership in liquefied gas shipping," Florian remarked. He identified this as a unique investment opportunity within an industry poised for substantial growth in the coming years, underpinned by a robust business model characterized by long-term contracts. "We look forward to leveraging our platform to help the company grow in new markets and with new customers," he concluded, signaling BlackRock's commitment to supporting the venture's expansion.

The joint venture is strategically positioned to capitalize on the significant structural tailwinds driving growth in the liquefied gas sector. Demand for liquefied gas shipping is projected to experience substantial growth over the next decade. This surge is attributed to the increasing adoption of LPG, ammonia, and ethane by commercial, industrial, and residential customers as lower-cost and lower-carbon fuel alternatives, as well as crucial inputs in industrial processes and products. Furthermore, the shipping of CO2 is anticipated to witness considerable demand growth as the global carbon capture and storage industry continues its rapid expansion.