NSCSA buys share of LPG trader and shipowner
The National Shipping Company of Saudi Arabia said Monday it is investing $50 million to acquire a 30.3 percent shareholding in Bermuda-based liquefied petroleum gas trader and shipowner Petredec Ltd.
“The gas trades out of the Gulf will grow significantly in the coming years. We consider our investment in Petredec to be the best route by which we can become a market leader in the shipping and trading of LPG in this region,” said Abdullah S. Nojaidi, chairman of NSCSA. “This transaction represents a number of firsts for NSCSA, including our first share acquisition of an existing shipping company, our first venture into the gas trades, and our first major investment outside the GCC (Gulf Cooperation Council) region.”
“We are aggressively growing our shipping and trading activities, and we expect to see a major part of this expansion take place in the Arabian Gulf. We are considering further development of our cooperation with NSCSA and we fully expect that our relationship will grow over time to our mutual benefit,” said Don Dunstan, chairman of Petredec.
The transaction is expected to be finalized in about one month, NSCSA and Petredec said in a joint statement.