BW Gas is the world's leading gas shipping company with a fleet of 72 LPG/ammonia and LNG vessels, while Yara is the world's largest player in the ammonia segment, trading more than 5 million tonnes per year or one third of the global seaborne trade. The partnership will increase both parties' flexibility providing a platform for future expansion of their seaborne ammonia trading and transportation businesses.

 

Commenting on the deal, Jan Håkon Pettersen, Managing Director and CEO of BW Gas, says: "The partnership with Yara, the world's leading ammonia producer, is strategically important for BW Gas to reach its goal of becoming the preferred supplier of gas transportation. The relationship will improve the utilisation of our fleet and create value for our shareholders. We will at the same time renew and expand our ammonia fleet and further strengthen our position as the world's leading shipping service provider to the gas industry."

 

"Our shipping fleet has, and will continue to represent an important competitive advantage for Yara for many years. While commercial control remains a core activity for Yara, ownership of shipping capacity is not. With BW Gas we establish a leading edge partnership. Their strength as the leading shipping service supplier within the LPG/ammonia segment will increase our flexibility and support our growth ambitions", says President and CEO of Yara, Thorleif Enger.

 

By a mix of assets and shares the agreement covers the following acquired ships and charterparties:

 

 

The vessels will be timechartered back to Yara for periods ranging from 3 to 15 years with an average of 9 years. The timecharters rates are fixed and aggregated TC income the first full year of operation after delivery vessels (2008) is approximately USD 80 million.

 

BW Gas will take over the timecharters of two newbuildings with K-Line and the timecharter on Marola with Carbofin. The three timecharter vessels will be chartered back to Yara for the same period they are chartered in.

 

The closing is expected before the end of second quarter 2006. The agreement is subject to approval from the competition authorities.

 

 

 

 

CONTACTS:

 

Jan Håkon Pettersen

Managing Director and CEO

Ph: + 47 22 12 06 00

E-mail: jan.hakon.pettersen@bwgas.com

 

Cato Hellstenius

Assistant Director, Finance and Investor Relations Department

Ph: +47 22 12 06 64

E-mail: cato.hellstenius@bwgas.com  

 

 

 

For more information on BW Gas visit our website: www.bwgas.com 

 

 

Bergesen Worldwide Gas ASA (BW Gas) is a leading global provider of gas marine transportation services. The company is the largest owner and operator of LPG (liquefied petroleum gas) carriers and one of the largest independent owners and operators of LNG (liquefied natural gas) carriers. BW Gas owns, part-owns and/or operates a fleet of 72 vessels of which 64 are LPG vessels (transporting mainly LPG and ammonia), and eight are LNG vessels. In addition the company has three LPG carriers and three LNG carriers on order. Currently the company employs approximately 1,350 seagoing personnel and 160 onshore employees.

 

 

Yara International ASA is a leading chemical company that converts energy and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers and agronomic solutions, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that safeguard air and water purity and preserve food quality. Yara's global workforce of 6,800 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.