Oslo-listed Avance Gas has inked a US$123M contract with China’s CIMC Sinopacific Offshore & Engineering to build two mid-sized LPG/ammonia carriers with dual-fuel engines
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The 40,000-m3 carriers, capable of operating on LPG or compliant fuel oil, are scheduled for delivery Q4 2025 and Q1 2026, respectively.
Avance Gas reported the ships will be equipped with shaft generators to further improve opex costs and their environmental profile.
In addition to transporting traditional LPG cargoes, the vessels will be able to carry ammonia. The seaborne ammonia trade is expected to grow significantly in the coming years due to numerous blue and green ammonia projects.
Avance Gas said the contract price for the newbuildings of approximately US$61.5M per ship compares very favourably to recent similar orders. Under the contract, Avance Gas holds options to order two further newbuildings at the same terms.
The two new mid-size carriers will increase the 18-shi Avance Gas fleet newbuilding programme to five, as the publicly traded owner has three LPG dual-fuel, ammonia-ready 91,000-m3 LPG carriers under construction at South Korea’s Hanwha Ocean Shipbuilding, formerly known as Daewoo Shipbuilding & Marine Engineering.
