Oslo-listed very large gas carriers (VLGCs) specialist Avance Gas has completed the last delivery with the twelfth and final vessel, the 2023-built dual-fuel VLGC, Avance Avior, to BW LPG prior year-end.
All 12 very large gas carriers (VLGCs) are now delivered, and the transaction has been completed.
To remind, Avance Gas sealed a deal earlier this year with BW LPG Ltd to sell the company’s remaining 12 VLGCs for a consideration of $1,050m.
In connection with the delivery of Avance Avior, 2.141 million shares in BW LPG were issued by the buyer to Avance Gas.
Avance Gas now holds 19,282,000 shares in BW LPG and is the second largest owner. This brings the total ownership share to 12.1% of total issued shares in BW LPG and 12.7% ownership adjusted for BW LPG’s treasury shares.
With the completion of the transaction, BW LPG owns and operates a total of 53 VLGCs, of which 22 are LPG dual-fuel.
BW LPG said that the deal solidifies its position as the world’s largest owner and operator of VLGCs, with the largest number of LPG dual-fuel powered VLGCs.
With the expanded fleet, BW LPG also noted that it will maintain its balanced chartering strategy, targeting a coverage of approximately 35-40% of its fleet capacity using time charters and freight forward agreements.
The shipowner BW LPG is positive on 2025 prospects, and sees the market being supported by the growth in LPG production and by the exports from North America.
Singapore-headquartered BW LPG commented: “The current spot market is trading in the USD mid 40,000s per day and we maintain a positive market outlook for 2025, although rate fluctuations are expected.
“Over the last six months the normalized Panama Canal transit levels have reduced sailing distances and put pressure on rates.
“Looking forward, we see the market is supported by the strong underlying growth in LPG production and exports from North America which are set to continue from second half of the year and underpinned by export terminal expansion projects.”
