Frontline 2012 orders two VLGCs at Chinese yard

21 August 2012 (Last Updated August 21st, 2012 18:30)

Bermuda-based Frontline 2012 has placed an order for two 83,000 CBM gas carriers (VLGCs) at China's Jiangnan Shipyard for $127m.

Bermuda-based Frontline 2012 has placed an order for two 83,000 CBM gas carriers (VLGCs) at China’s Jiangnan Shipyard for $127m.

Both the VLGCs are expected to be delivered to the oil tanker shipping firm in 2014.

An additional four vessels worth $254m have been added to the contract as fixed-price options, with delivery scheduled to take place in 2014 and 2015.

Frontline 2012 chairman and owner John Fredriksen said: "The high growth in LPG production, combined with a low new-building order book and historic low new-building prices for fuel-efficient tonnage, creates a unique opportunity to enter this market."

"Frontline 2012 is currently in discussions regarding a further increase of the new-building programme and will continue to pursue its target within three years to create the global leading commodity shipping company," Fredriksen added.

Under the contracts, Hemen Holding will be responsible for the performance guarantees towards the yard.

The addition of the VLGC vessels to Frontline’s fleet will enable the company to expand its activities into the transport of crude oil, product and liquefied petroluem gas.