Singapore’s Petredec, one of the largest movers of LPG in the world, is bolstering its fleet with the addition of up to four VLGCs.
Petredec has agreed a contract with Shanghai-based Jiangnan Shipyard for the construction of two 84,000 cu m LPG carriers with the option to build a further two units. The first two vessels are to be delivered during Q2 and Q3 2019 and the optional vessels would deliver later the same year, increasing Petredec’s owned fleet of VLGCs to 21.
Petredec chief executive Giles Fearn commented: “VLGCs have been through an extensive newbuild program and both shipowners and charterers are getting used to today’s new market environment. However, we are starting to see some consolidation within the VLGC sector, steadying owners’ returns and the market expects to see accelerated scrapping of older vessels which are less efficient, don’t comply with latest environmental legislation and are facing expensive drydocks.”