Avance Gas Holding Ltd. announced the option of the two mid-sized LPG/ammonia carriers (MGCs) from Nantong CIMC Sinopacific Offshore & Engineering Co., LTD (CIMC SOE), announced in June 2023. The two newbuildings 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 meters and are scheduled for delivery during the second quarter and the fourth quarter of 2026.

The ships are sister ships of the two MGCs contracted in June. As the ships will also be equipped with shaft generators this will further improve operation and maintenance cost while improving the environmental profile of the ships. In addition to be able to transport traditional LPG cargoes, the vessels can also carry ammonia cargoes.

The seaborn ammonia trade is expected to grow significantly in the coming years due to the numerous blue and green ammonia projects incentivized through various tax credits and carbon taxed. Contract price for the newbuildings is approximately $61.5 million per vessel i.e., $123 million in total, same as the two ships contracted in June as the Company has utilized its option to acquire two more ships at this attractive price prior to the option lapsing.