Third partner for Avance

Transpetrol Holding is to become the third equal partner in Avance Gas, the Stolt-Nielsen/Sungas LPG tanker operation. Avance has agreed to take Transpetrol's two 2009-built VLGCs in a cash-and-shares deal, which will leave Transpetrol with 33.3 per cent of the company.The two ships, Prospect and Progress, will join the Avance fleet in early July. Along with the two vessels recently acquired from Maran Gas, this will take the Avance fleet up to nine ships.

"We are pleased to have reached this agreement with Transpetrol, which is another step in Avance Gas's stated strategy of consolidating the VLGC market through mergers and acquisitions of second hand ships," says Niels G Stolt-Nielsen, CEO of Stolt-Nielsen Ltd. "As the fundamentals for the transportation of LPG continue to look favourable for the next several years we believe the strategy to focus on secondhand tonnage with prompt delivery versus ordering new ships for delivery several years in the future, will offer a better return to the joint venture partners."