VLGC owner Avance Gas enters MGC market

Oslo-listed shipowner Avance Gas has purchased two newbuild LPG/ammonia vessels and entered the midsize gas carrier (MGC) market.

The MGCs will be built by Chinese shipbuilder CIMC and have a capacity of 40,000m³, and will be designed to carry LPG and ammonia. They will have dual-fuel capability, using LPG in addition to fuel oil.

The gas carriers are scheduled for delivery in the fourth quarter of 2025 and the first quarter of 2026.

Avance Gas owns and operates 14 very large gas carriers (VLGCs) with a further two on order for delivery in 2024. The move to order two MGCs take the shipowner into new waters, diversifying its fleet.

The order is valued at around $61.5mn per vessel, according to Avance Gas. And as part of the agreement, the firm has the option to order two further MGC newbuilds.

Avance chief executive Oystein Kalleklev said the company expects strong growth in ammonia trade. He noted Avance already has two VLGCs capable of burning ammonia and the two for delivery next year can carry and burn ammonia.

By Jamie Aldridge