Norway-based LPG shipping firm Avance Gas Holding has entered into a time charter agreement for its first dual fuel VLGC Avance Polaris to French energy major TotalEnergies.
Avance Gas and TotalEnergies signed this time charter deal specifically for a period of two years .
The ship is the first out of two LPG dual-fuel VLGCs Avance ordered from Korean shipyard DSME back in 2019.
These very large gas carriers are to enhance the green profile of the Avance Gas fleet. This is because their dual-fuel propulsion system will significantly reduce emissions compared to any VLGC on water. In other words, they will reduce SOx emission by 97-100 per cent, particulate pollution by 90 per cent, and significantly reduce CO 2 emissions.
As per the official plan, DSME will deliver Avance Polaris in January 2022. After that, the time charter hire has a mechanism that gives both parties exposure to the market.
Avance Gas operates in the global market for the transportation of liquefied petroleum gas (LPG). It owns and operates very large gas carriers (VLGC). In addition, it operates a fleet of thirteen ships and six dual-fuel LPG newbuilds due for delivery in 2022 and 2023.