Avance Gas Holding Ltd (OSE: Avance) 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 2021 and Q1 2022.
The transaction enhances the green profile of the Avance Gas fleet while increasing its competitiveness. The state of the art dual-fuel propulsion system will significantly lower fuel consumption, reduce fuel costs and reduce emissions compared to any VLGC on water.
The outlook for the freight market is healthy, supported by continued strong US LPG exports and growing Asian demand. The price and payment terms are attractive and we expect that the vessels will secure attractive financing in line with their environmentally friendly profile.
Ulrik Uhrenfeldt Andersen, Chief Executive Officer of Avance Gas AS comments: “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. Together, these features translate into unrivalled levels of operational efficiency.
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 CO2 emissions compared to modern conventional VLGC tonnage, we are taking the first steps towards a low-carbon future.
We have secured a very attractive price with a quality shipbuilder and the tail-heavy payment structure and finance available to us means we maintain our capacity to pay dividend, which remains top-priority and an integral part of our strategy.”
Source: Avance Gas