Øystein M. Kalleklev, chief executive of Avance Gas said today that the company has struck a deal with an unnamed charterer to extend the time charter for its non-scrubber 2015-built VLGC Pampero by minimum 21 months.
The ship which has a 84,000 cbm cargo capacity is currently on a 12-month time charter with a trader which expires in November 2023.
The owner and operator of VLGCs Avance Gas notes that the charterer has now agreed to a new time charter which will commence in direct continuation of the existing time charter.
The new deal has a minimum duration of 21 months securing employment for the ship until she is due for the 10-year special survey in the third quarter of 2025.
The rate under the time charter is fixed and will add about $29 million in firm backlog to the company.
The charterer will also have the option to extend the new time charter by one year following the completion of the 10-year special survey.
Øystein Kalleklev, chief executive of Avance Gas, said the new contract fits perfectly with the drydocking schedule of the ship once she is due for the 10-year survey in the third quarter of 2025 making their planning easier.
The top management expresses his opinion that the new deal also fits well into the company´s commercial portfolio as it has several time charters running off near term with both Iris and Venus Glory fixed time charters lapsing in fourth quarter this year, while the Avance Polaris variable time Charter is lapsing January next year.
Given the improved market, the owner also will be able to re-price the ship with a stronger rate for a longer period.
“This gives us the opportunity to re-contract ships in a significantly improved freight market compared to when these time charters were agreed as evident from the Pampero fixture,” he noted.
The Oslo-listed shipowner operates a fleet of fourteen modern ships including two dual fuel LPG newbuildings for delivery in early 2024 as well as four medium sized gas/ammonia carriers due for delivery in 2025 and 2026.
