Eversheds Sutherland advises Stolt-Nielsen LNG Holdings and Avenir LNG

Eversheds Sutherland has advised Stolt-Nielsen LNG Holdings Ltd (“Stolt”) and Avenir LNG Ltd (“Avenir”) in connection with the investment by Stolt, Golar LNG Ltd and Höegh LNG Holdings Ltd. of USD182 million into Avenir. This investment will enable Avenir to pursue opportunities to deliver LNG to areas of stranded demand, as well as the development of LNG bunkering capabilities.

Stolt remains the largest shareholder of Avenir with ownership of 50 per cent. Golar LNG Ltd and Höegh LNG Holdings Ltd. each hold a 25 per cent share. The investment will be contributed as cash and equity-in-kind and will fund the construction of six small-scale LNG carriers, a small-scale storage terminal and regasification facilities.

Avenir was formed by Stolt in 2017 to provide LNG to markets lacking access to natural gas pipelines. With this joint investment, Stolt will consolidate all its LNG activities into Avenir, including four LNG new buildings on order at Keppel Singmarine in Nantong, China and the joint-venture LNG terminal and distribution facility to be constructed in the port of Oristano, Sardinia. Avenir plans to source and ship LNG to the terminal using small LNG carriers, and to distribute the LNG in trucks and through regasification into local network grids. In addition, Avenir plans to order two further small-scale LNG carriers.

Eversheds Sutherland’s Dubai based corporate team led on the transaction and included principal associate Hani Nassef, associate Eliza Grant and partners Iwan Walters and Zeid Hanania. Support was provided by UK based partners Antony Walsh (corporate), Danny Blum (employee incentives) and Peter Harper (competition); associate Todor Papanov (competition); and trainee Inaya Homoud (corporate). Dutch law support was provided by Amsterdam based partner Tom van Wijngaarden, associate Laetitia Goor and trainee Carola De bruijn.

Bapsy Dastur, general counsel and chief legal officer at Stolt said, “This was a strategic investment for Stolt as it now positions Avenir as an emerging leader in small-scale LNG. Eversheds Sutherland did an excellent job advising us. Their support and advice was commercial, timely and was exactly what was needed to push this over the finish line and allow for a smooth closing.”

Zeid Hanania said, “We are delighted to have supported Bapsy and the team at Stolt on this strategic investment and look forward to continuing to work with them on future transactions.”