Norway-based shipping firm Avance Gas Holding has increased its dual-fuel VLGC newbuilding program from four to six 91,000 cbm vessels .
The order comes just a few months after the most recent fleet addition deal announced back in January.
The latest two newbuilds will also be built by South Korean major Daewoo Shipbuilding and Marine Engineering (DSME) in South Korea.
The two additional VLGCs are scheduled for delivery in the second half of 2023.
The vessels are capable of burning LPG and will have larger cargo intake, reduced bunkering time and significantly lower CO2 emissions with an estimated reduction of 39,5% compared to a 2010 Korean built VLGC design at 16 knots, Avance Gas said.
The vessels are intended to be prepared for ammonia as fuel as the company looks to position itself for a zero-carbon fuel solution as soon as the technology is ready and feasible.
“The investment highlights our commitment towards decarbonization of the LPG and shipping industries,” the company added.
The newbuilding program will be fully funded through the $65 million private placement.
“Together with robust market fundamentals we expect a strong cash flow and increased ability to return value to shareholders,” the shipowner added, announcing the order.
The LPG company operates a fleet of thirteen ships and has six dual fuel LPG newbuildings due for delivery in 2021, 2022, and 2023.