Frontline 2012 divests eight new VLCC's

Joint Venture Avance Gas has made a deal with Frontline 2012 to take over the companyr's eight VLGC gas carriers, set for delivery in 2014. The deal cements the consolidation in the gas segment.

The consolidation of the gas segment has now begun for real, cemented by the finalized agreement between Avance Gas and Frontline 2012, as the two companies have settled the final details regarding Avance's acquisition of Frontline's eight 83,000 cbm VLGC newbuildings, set for delivery from Jiangnan Changxing shipyard in China in August 2014, according to a press release from Avance Gas.

Avance Gas is a joint venture between Norwegian Stolt-Nielsen Gas and Sungas Holdings, announcing in late August that Frontline 2012 would be part of the venture going forward, with a one third ownership stake. And the sale of the eight large gas ships solidifies the collaboration between the three parties. Avance Gas will pay USD 75 million per delivered ship, 23 percent paid now and the rest upon delivery. Frontline 2012 will remain responsible for supervising construction of the newbuildings until they are delivered, says Avance Gas.

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