Oslo-listed very large gas carrier (VLGC) specialist Avance Gas has struck a new one-year charter with an energy major for its LPG dual fuel Avance Polaris.
.The 2022-built 91,000 cu m ship has been on a two-year variable time charter with TotalEnergies since delivery. The new contract will start at the end of February in direct continuation from the existing employment.
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% higher cargo intake, 10-15% 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.
John Fredriksen-controlled Avance Gas owns and operates a fleet of fourteen VLGCs and two dual-fuel newbuilds for delivery in 2024 and four mid-sized units delivering in 2025 and 2026.
