Avance Gas Holding Ltd - increasing the newbuilding program to six dual fuel VLGCs
Bermuda, 21 April 2021: Avance Gas Holding Ltd (OSE: AGAS) announces that it has increased its dual fuel VLGC newbuilding program from four to six 91,000 CBM vessels. The newbuilding program is with Daewoo Shipbuilding and Marine Engineering (DSME) in South Korea, with the two additional VLGCs announced today for delivery second half 2023.
The vessels are capable of burning LPG and will have an unrivalled performance with lower consumption, larger cargo intake, reduced bunkering time and will have significantly lower CO2 emissions with an estimated reduction of 39,5% compared to a 2010 Korean built VLGC design at 16 knots. Further, the vessels are intended to be prepared for ammonia as fuel as we are positioning ourselves for a zero-carbon fuel solution as soon as the technology is ready and feasible. The investment highlights our commitment towards de-carbonisation of the LPG and shipping industries.
The newbuilding program will be fully funded through the $65 million private placement assuming a normalised financing structure at delivery. Together with robust market fundamentals we expect a strong cash flow and increased ability to return value to shareholders.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securties Trading Act.
For further queries, please contact:
Kristian Sørensen, CEO
Tel: +47 22 00 48 10
Randi Navdal Bekkelund, CFO
Tel: +47 22 00 48 29
About Avance Gas:
Avance Gas operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carrier (VLGC) and operates a fleet of thirteen modern ships and six Dual Fuel LPG newbuildings due for delivery in Q4 2021, Q1 2022, Q4 2022 and Q1-Q4 2023. For more information about Avance Gas, please visit www.avancegas.com (http://www.avancegas.com).