Hamilton, Bermuda - January 18, 2021
Avance Gas Holding Ltd (OSE: "AGAS", or the "Company") today announces that it has entered into shipbuilding contracts for two 91,000 CBM, LPG Dual-Fuel VLGCs with Daewoo Shipbuilding and Marine Engineering (DSME) in South Korea, for delivery Q4 2022 and Q1 2023.
The investment enhances the green profile of the Avance Gas fleet, allowing the company to take another important step towards de-carbonisation while contributing to a greener shipping industry and achieving the targeted 40% reduction in emissions by 2030. The new vessels are capable of burning LPG, have larger intake and lower daily consumption. They will also be fitted with shaft generator further enhancing emissions reduction for an even greater greener profile.
The outlook for the freight market remains healthy, supported by continued strong US LPG exports and growing Asian demand. The price and terms are attractive and we expect that the vessels will also secure attractive financing in line with their environmentally friendly profile.
These vessels offer unrivalled performance coupled with market leading emissions reduction and with the installation of shaft generators, we avoid use of any auxiliary engines while sailing, removing the requirement to burn 5-7 metric tons of hydrocarbon fuel per day.
This transaction shows Avance Gas' commitment to building a stronger and sustainable future in line with our ESG commitments.
We have secured a contract with a quality shipbuilder and the payment structure and finance available to us allows us to maintain our capacity to pay dividend.
The Board of Directors
Avance Gas Holding Ltd
About Avance Gas
Avance Gas Holding Ltd operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carriers (VLGCs), operating a fleet of 13 modern VLGC with four duel-fuel VLGCs on order.
For more information about Avance Gas, please visit: www.avancegas.com
Avance Gas, press release