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Avance Gas sells VLGC fleet to BW LPG

Avance Gas has agreed to sell its entire very large gas carrier (VLGC) fleet to BW LPG for $1.05 billion cash (€0.94 billion).

BW Group will be taking over 12 ships built between 2015 and 2023, adding to its fleet of 41 VLGCs.

“The fleet of Avance Gas is today a bit sub-scale, and we have therefore found it more attractive for our shareholders to take advantage of the relatively high secondhand prices and sell the VLGC fleet to BW LPG,” said CEO Kalleklev.

“We find BW LPG well positioned with an integrated business model priced at a relatively modest price and this transaction will further strengthen BW LPG with both cost and income synergies. In our pragmatic view, it doesn’t matter whether the ships are black or light green as long as they are generating cash.” 

This fleet expansion comes at an opportune time with VLGC newbuild deliveries abating and continued growth in global LPG export volumes, BW LPG said. Global VLGC fleet will count about 400 ships by the end of the year, with 13 additional newbuilds scheduled for delivery in 2025.