Avance Gas’ dual-fuel VLGC newbuild hits the water
Norwegian shipping company Avance Gas has launched its newest dual-fuel very large gas carrier (VLGC), Avance Avior.
As informed, the 91,000 cbm carrier was launched on 13 December. The vessel is the fourth VLGC in a series of six new ships being built by South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).
The dual fuel newbuilding, capable of running on liquefied petroleum gas (LPG), is scheduled for delivery in the first half 2023 along with its sister vessel Avance Rigel.
As announced earlier, the company secured financing for the two vessels.
In May, the company signed a $555 million sustainability-linked term facility with a bank syndicate. The facility is a refinancing of the previous bank facility financing the nine VLGCs including financing of the newbuilds Avance Rigel and Avance Avior.
The vessels are capable of burning LPG and will have larger cargo intake, reduced bunkering time and significantly lower CO2 emissions with an estimated reduction of 39,5% compared to a 2010 Korean-built VLGC design at 16 knots, according to the company.
“With the worldwide energy crisis, we think the clean properties of LPG should be compelling, especially when coupled with its affordable price compared to other fuels. Hence, we remain upbeat about the long-term prospects for LPG freight despite a rather large orderbook for next year,” the company noted.
The vessels are intended to be prepared for ammonia as fuel as the company looks to position itself for a zero-carbon fuel solution as soon as the technology is ready and feasible.
Avance Gas operates in the global market for transportation of LPG. The company owns and operates very large gas carriers (VLGC) and operates a fleet of thirteen ships including two dual fuel LPG newbuidlings and four dual fuel LPG newbuildings due for delivery in 2023 and 2024.