Norwegian shipping company Avance Gas has ordered two mid-sized 40,000 cubic metres LPG/ammonia carriers with dual fuel engines at China International Marine Containers(Group) Ltd. (CIMC).
The two companies entered into a newbuilding contract worth $123 million on 7 June. The agreement for the two newbuilds also includes an option for two more vessels at the same terms.
Scheduled for delivery during the fourth quarter of 2025 and the first quarter of 2026, the dual-fuel vessels will be able to run on LPG in addition to compliant fuel oil.
The ships will also be equipped with shaft generators which will further improve operation and maintenance costs while improving the environmental profile, Avance Gas revealed.
In addition to transporting traditional LPG cargo, the vessels will also be fully able to carry ammonia cargo.
Øystein Kalleklev , CEO of Avance Gas, said: “We are thrilled to announce that we are broadening our product offering in Avance Gas with two high-spec mid-sized LPG/ammonia carriers. These ships will be fitted with dual-fuel LPG engines as well as shaft generators making them highly versatile and future-proof in terms of emissions.
“These ships are not only perfect for the LPG trade but also ammonia trade as parcel sizes for ammonia cargoes tend to be in this size lot. Given the high expected growth of the ammonia trade, this makes the ships a very attractive addition to our fleet where we already have two VLGCs ready for burning ammonia and two VLGCs for delivery next year which can both carry and burn ammonia.”
Kalleklev pointed out that with the substantial cash balance in Avance Gas of $220 million at the end of the first quarter and the strong bookings for the second and third quarters, the company is able to fully finance these ships without adversely impacting its strong dividend capacity.