BW LPG has completed the $1.05bn acquisition of 12 very large gas carriers (VLGCs) from Avance Gas, following the delivery of the final vessel, Avance Avior, renamed to BW Avior. BW LPG now operates 53 VLGCs, including 22 LPG dual-fuel vessels and will continue its balanced chartering strategy, aiming to cover 35%-40% of its fleet capacity with time charters and freight forward agreements. BW LPG now boasts a combined carrying capacity of more than three million cubic metres across its VLGC fleet.
BW LPG pioneered the world’s first dual-fuel LPG propulsion engine, which can seamlessly switch between LPG and conventional fuels. When compared to compliant fuels, these vessels reduce emissions of Sulphur Oxides by ~97%, Particulate Matter by ~90%, Carbon Dioxide by ~15%, and Nitrous Oxides by ~20%.
In November 2024, Avance Gas entered into a Heads of Agreement (HoA) with Exmar LPG BV to sell its remaining four Mid-Sized Gas Carriers (MGCs) newbuilding contract through a novation. The transaction is subject upon the issuance of new refund guarantees to Exmar, as well as the completion of the customary documentation and closing procedures. The transaction is expected to be effective early January 2025.
