Shipping firm Avance Gas Holding has ordered two 91,000 cbm, liquefied petroleum gas (LPG) dual-fuel very large gas carriers (VLGCs) in South Korea.
The company revealed it entered into shipbuilding contracts with Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) for the vessel pair.
The units are slated for delivery in Q4 2022 and Q1 2023, respectively.
“The investment enhances the green profile of the Avance Gas fleet, allowing the company to take another important step towards decarbonisation while contributing to a greener shipping industry and achieving the targeted 40% reduction in emissions by 2030,” Avance Gas said in a statement.
As explained, the new vessels are capable of burning LPG, have larger intake and lower daily consumption. They will also be fitted with shaft generator further enhancing emissions reduction for an even greater greener profile.
“The outlook for the freight market remains healthy, supported by continued strong US LPG exports and growing Asian demand. The price and terms are attractive and we expect that the vessels will also secure attractive financing in line with their environmentally friendly profile,” the company added.
Avance Gas has two more 91,000 cbm VLGCs on order at DSME, data provided by VesselsValue shows. The newbuilds are scheduled to be delivered in 2021 and 2022, respectively.
The dual-fuel units were ordered back in December 2019.
Avance Gas currently operates a fleet of thirteen VLGCs with four duel-fuel VLGCs on order.