Avance Gas Holding Ltd (Avance Gas) (OSE:AGAS) has announced a new Time Charter for the VLGC Pampero. Pampero is currently on a 12-month Time Charter with a trader which expires in November 2023.
The charterer has now agreed to a new Time Charter which will commence in direct continuation of the existing Time Charter. Pampero is a non-scrubber 2015 built VLGC with 84,000 cbm cargo capacity.
The new Time Charter has a minimum duration of 21 months securing employment for the ship until she is due for the 10-year special survey in the third quarter of 2025. The rate under the Time Charter is fixed and will add about $29 million in firm backlog to the Company. The charterer will also have the option to extend the new Time Charter by one year following the completion of the 10-year special survey.
Øystein Kalleklev, CEO of Avance Gas, commented:
“We are happy to announce an extension of the Time Charter for Pampero with a customer which we share a very good relationship with. Given the improved market, we are also able to re-price the ship with a stronger rate for a longer period. Additionally, the new contract fits perfectly with the drydocking schedule of the ship once she is due for the 10-year survey in the third quarter of 2025 making our planning easier. The new Time Charter also fits well into our commercial portfolio as we have several Time Charters running off near term with both Iris and Venus Glory fixed Time Charters lapsing in fourth quarter this year while the Avance Polaris variable Time Charter is lapsing January next year. This gives us the opportunity to re-contract ships in a significantly improved freight market compared to when these Time Charters were agreed as evident from the Pampero fixture.”