Avance Gas completes first VLGC delivery to BW LPG
Avance Gas Holdings has completed the successful sale and delivery of the first vessel in a fleet of 12 modern very large gas carriers (VLGCs) to Singapore-based BW LPG.
The sale of the 2005-built, non-scrubber equipped VLGC Chinook is part of a transaction with a total estimated value of US$1.05 billion.
The acquisition fleet comprises four 91,000-cubic-metre dual-fuel VLGCs, of which two are 2022-built and two are 2023-built, and eight 2015-built 83,000-cubic-metre VLGCs of which six are scrubber-fitted.
The transaction is funded through the issuance of 19.282 million new BW LPG shares to Avance Gas, a cash consideration of US$585.4 million, of which US$368 million is to fund the repayment of the existing bank debt of 10 vessels. Remaining debt in the amount of US$132 million pertaining to two sale-leaseback vessels is to be novated.
Upon the delivery of all 12 vessels, the transaction will increase the number of BW LPG's owned and operated VLGCs from 41 to 53, of which 22 are LPG dual-fuel capable.