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Eitzen pulls plug on ENGC
Originally published:  01/02/2008
Eitzen Gas has resigned from the Eitzen Norgas Gas Carriers (ENGC) pool, effectively winding up the 32-strong ethylene tanker operation. Eitzen Gas says it will continue its cooperation with Solvang, which involves 12 Eitzen and five Solvang ethylene tankers.
IM Skaugen, parent company of Norgas, says the development will have no impact on the balance sheet and it will be "business as usual" as far as its customers are concerned. "Norgas will continue to service its customers globally through offices in Singapore, Houston, Dubai, Shanghai and Oslo, coordinated from our base in Singapore," the company says.
Neither party has commented on the reasons behind the move, although Skaugen says that "pools of this type have a tendency not to last very long and this was no exception. Such pools and alliances depend also on both parties carrying out fleet renewals and having fleets that are compatible in age." Skaugen currently has up to ten ethylene carriers on order in China.
The ENGC pool was a continuation of the collaboration formed between Norgas and Maersk Gas Carriers in 2003. Eitzen Gas took over Maersk's ethylene fleet in 2006 and assumed its role in the pool at the same time.
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