Following up on their stated intentions this past August, Frontline 2012 Ltd. has finalized a sale agreement today with Avance Gas Holding Ltd. (AGHL) of eight, 83,000 cbm Very Large Gas Carriers (VLGCs) which are currently under construction at Jiangnan Changxing Shipyard in China.
The vessels will be acquired by AGHL immediately upon their respective deliveries to Frontline 2012 between August 2014 and September 2015. Frontline notes that AGHL has agreed to pay $75.0 million for each ship, of which $17.4 million will be paid upfront and $57.6 million will be paid upon delivery from the yard.
AGHL, owned by three equal partners – Stolt-Nielsen Gas, Sungas Holding, and Frontline 2012, is a pure play to the VLGC market and is being maneuvered for an eventual IPO according to a statement by Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen in August.
Following the acquisition, AGHL is the third largest, pure play VLGC owner and operator with six vessels on the water and eight ships under construction.