World News
Frontline 2012 Takes Share in Avance Gas Holdings
John Fredriksen's Frontline 2012 Ltd. (Frontline 2012) will become a shareholder in Avance Gas Holdings Ltd. (AGHL) through a deal with Stolt-Nielssen Ltd., Frontline 2012 said in an emailed statement.
Frontline 2012, Stolt-Nielsen Gas Ltd., and Sungas Holdings Ltd. will be equal owners of the company.
As part of the deal, Frontline 2012 will enter into discussions on selling eight new 83,000 cubic meter (cu m) very large gas carriers (VLGCs) to AGHL.
The eight newbuilds are scheduled for delivery form the Jiangnan Changxing Shipyard in China from the middle of 2014 through the end of 2015.
"The acquisition of shares in AGHL by Frontline 2012 is a further step in AGHL's consolidation strategy of the VLGC market," said Stolt-Nielsen Ltd. CEO Niels G. Stolt-Nielsen.
"With three strong owners, it is the company's plan to continue to focus on second-hand tonnage, mergers and acquisitions.
"With rising US exports of LPG from shale gas resources and with continued growth in LPG exports from the Middle East and West Africa, the dynamics of this transportation market are improving in line with our expectations.
Stolt-Nielsen added that the company's owners plan to do an over-the-counter listing for AGHL, followed by an initial public offering.
"We are pleased to be able to enter into a deal with Stolt-Nielsen and Sungas," Fredriksen, chairman of Frontline 2012, said.
"We will get immediate market exposure to what today is a healthy freight market.
"With its existing six modern VLGCs, a solid operation, and strong owners, Avance Gas is well positioned to grow and act as a major consolidator in the large LPG market."
Fredriksen, a shipping billionaire who also controls liquefied natural gas (LNG) shipping company Golar LNG Ltd. (Golar) [NASDAQ:GLNG], has said natural gas is a growth area for his businesses.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 627.50 | 8.00 | 733.50 | 10.50 |
| Rotterdam | 570.50 | 10.00 | 737.00 | 12.50 |
| Houston | 590.00 | 6.00 | 758.00 | 5.50 |
| Fujairah | 627.00 | 5.50 | 878.00 | 9.50 |
| Global 20 Ports Average | 640.00 | 5.50 | 821.50 | 9.00 |
| Global 4 Ports Average | 603.50 | 7.50 | 776.50 | 9.50 |
| Global Average Bunker Price | 693.50 | 2.50 | 881.00 | 4.50 |
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