Avance Gas Holding Limited, the Bermudian-based company engaged in the transportation of liquefied petroleum gas, has struck another deal to renew its fleet.

The company has exercised a purchase option on two mid-sized LPG/ammonia carriers from China’s Nantong CIMC Sinopacific Offshore & Engineering Co Ltd.

The company said the two new-buildings are equipped with dual-fuel engines capable of running on both LPG as well as compliant fuel oil.

The ships will have a cargo capacity of 40,000 cubic metres and are scheduled for delivery during the second quarter and the fourth quarter of 2026.

The ships are sisters of the two MGCs contracted in June by Avance Gas.

The contract price for the new-buildings is approximately $61.5 million per vessel for a total of $123 million, the same price as the two ships contracted in June as the company has utilised its option to acquire two more ships at this attractive price prior to the option lapsing, Avance said.

Øystein Kalleklev, chief executive of Avance Gas, said: "We are pleased to expand our fleet with another two MGCs. With these ships we have contracted in total four new MGCs, thereby broadening our product offering in Avance Gas while renewing the fleet.

“These ships will be fitted with dual-fuel LPG engines as well as shaft generators, making them highly versatile and future proof in terms of emissions. These ships are not only perfect for the LPG trade but also ammonia trade as parcel sizes for ammonia cargoes tend to be in this size lot.

“Given the high expected growth of the ammonia trade, the four new MGCs are a very attractive addition to our fleet, where we already have two very large gas carriers on water which are ammonia ready in terms of running it as fuel, while the two VLGCs for delivery next year can both carry and burn ammonia.

“Given the substantial cash balance in Avance Gas of $220 million at end of the first quarter, the recent sale of Iris Glory at $60 million and the strong freight market, we have the capacity to fully finance these ships without adversely impacting our ability to continue to pay dividends as we will demonstrate when reporting the second-quarter results on August 30."