Frontline 2012 Becomes Shareholder in Avance Gas Holding

Stolt-Nielsen Limited announced yesterday that a heads of agreement (HOA) has been entered into with Frontline 2012 Ltd. whereby Frontline 2012 will become a shareholder in Avance Gas Holding Ltd (AGHL) along with Stolt-Nielsen Gas Ltd. and Sungas Holdings Ltd.

Following the expected transaction, the three owners will exercise equal control over AGHL. The transaction follows the previously announced withdrawal of Transpetrol Gas Holdings Ltd. from AGHL.

As part of the HOA, Frontline 2012 and AGHL will enter into discussions regarding the purchase by AGHL of eight 83,000 cbm VLGC newbuildings from Frontline 2012. The ships have been ordered by Frontline 2012 from the Jiangnan Changxing Shipyard in China, with deliveries expected to take place between mid 2014 and end 2015.

Commenting on the transaction, Niels G. Stolt-Nielsen, Chief Executive Officer of

Stolt-Nielsen Limited, said, “The acquisition of shares in AGHL by Frontline 2012 is a further step in AGHL’s consolidation strategy of the VLGC market. With three strong owners, it is the company’s plan to continue to focus on second-hand tonnage, mergers and acquisitions. With rising US exports of LPG from shale gas resources and with continued growth in LPG exports from the Middle East and West Africa, the dynamics of this transportation market are improving in line with our expectations. It is the owners’ plan to do an OTC listing in Oslo followed by an IPO.”

The Chairman of Frontline 2012, John Fredriksen, said in a comment, “We are pleased to be able to enter into a deal with Stolt-Nielsen and Sungas. We will get immediate market exposure to what today is a healthy freight market. With its existing six modern VLGCs, a solid operation, and strong owners, Avance Gas is well positioned to grow and act as a major consolidator in the large LPG market.”

It is Frontline 2012’s intention to dividend out approximately 20% of the shares it receives in AGHL directly to its shareholders in order to secure an immediate OTC listing of AGHL.

Stolt-Nielsen, August 23, 2013