Avance Gas Considers Converting Ships to Run on LPG
- Business & Finance
Norway-based LPG shipping firm Avance Gas could convert its ships to run on liquefied petroleum gas ahead of the IMO emission regulations coming into force by 2020.
Namely, the company explained that it is considering whether it should convert some of its ships to run on LPG fuel, install scrubbers or use compliant low-sulphur fuel.
“We do expect that the freight market from 2020 will reflect higher prices on compliant fuel,” the company said.
The company revealed its plans as part of its third quarter of 2018 financial report, in which it said that freight rates strengthened during the period as higher US export and lower fleet growth balanced the market.
The average time charter equivalent (TCE) rate for the fleet was USD 15,289/day, up from USD 7,711/day reported in the second quarter of 2018. TCE earnings for were USD 19.1 million, up from USD 9.3 million seen in the previous quarter.
The company managed to shrink its net loss to USD 8.9 million from a net loss of USD 19.3 million in the second quarter.