Oslo-listed very large gas carriers (VLGCs) specialist Avance Gas has struck a new one-year charter with an energy major for one of its VLGCs.

The owner entered into a variable time charter agreement for the dual fuel VLGC “Avance Polaris,” built in 2022, with an energy major.

The ship “Avance Polaris” has been on a two-year variable time charter since delivery in early 2022 and this new charter will commence in direct continuation from the existing time charter until end of February 2024.

Øystein Kalleklev, chief executive of Avance Gas, said the charter with a variable hire linked to the spot market rates, benefits the company because the ship has considerably lower average freight costs than a traditional VLGC.

“This is due to the fact that the vessel has approximately 10 per cent higher cargo intake, 10-15 per cent lower fuel consumption and is equipped to burn LPG which is considerably cheaper in most cases than compliant fuel and also better in terms of carbon emissions which is now also financially rewarded if you call EU ports due to the Emission Trading System,” Kalleklev explained.

The company, an owner and operator of very large gas carriers (VLGCs), owns sixteen LPG VLGC ships consisting of twelve modern VLGCs including four dual fuel LPG VLGCs and four dual fuel MGCs for delivery in 2025 and 2026.