Norway-based LPG shipping firm Avance Gas Holding has entered into shipbuilding contracts for two 91,000 cbm, LPG dual-fuel very large gas carriers (VLGCs) with South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME).
The units are scheduled for delivery in Q4 2021 and Q1 2022.
As explained, the transaction enhances the green profile of the Avance Gas fleet as the newbuilds’ dual-fuel propulsion system will significantly lower fuel consumption, reduce fuel costs and reduce emissions compared to any VLGC on water.
“Signing the contracts is a milestone for Avance Gas. The new vessels offer larger intake, lower daily consumption and, naturally, the possibility of burning LPG, which is much cheaper and cleaner than compliant fuel,” Ulrik Uhrenfeldt Andersen, Chief Executive Officer of Avance Gas, commented.
“The investment also means we are delivering on our sustainability agenda. By reducing SOx emission with 97-100%, particulate pollution with 90% and significantly reduce CO 2 emissions compared to modern conventional VLGC tonnage, we are taking the first steps towards a low-carbon future.”
According to Avance Gas, the outlook for the freight market is healthy, supported by continued strong US LPG exports and growing Asian demand. In line with this, the price and payment terms for the LPG newbuilds are also attractive.
“We expect that the vessels will secure attractive financing in line with their environmentally friendly profile,” the company said.