Avance Gas Boosts BW LPG Stake with Sixth VLGC Delivery

Avance Gas Holding Ltd, a Norway-based shipping company, has successfully completed its sixth Very Large Gas Carrier (VLGC) delivery to BW LPG Ltd, significantly increasing its stake in the world's leading owner and operator of LPG vessels. This strategic move positions Avance Gas as a major shareholder in BW LPG, offering potential synergies and enhancing its influence in the LPG shipping industry.

The sixth VLGC delivery, the 2015-built scrubber-fitted vessel Passat, was handed over to BW LPG on November 22, 2024. In connection with this delivery, Avance Gas received 1.35 million shares in BW LPG, bringing its total ownership to 6.15 million shares, representing a 4.2% stake in the company. These issued shares have a 40-day lock-up period, as previously announced.

The remaining eight vessels from Avance Gas' VLGC fleet are scheduled for delivery to BW LPG by year-end. As of now, one vessel is expected to be delivered in November, with the remaining seven slated for December. Avance Gas will issue regular press releases as these deliveries progress and will provide more information in its third quarter results presentation on November 27, 2024.

With its increased shareholding in BW LPG, Avance Gas is well-positioned to influence the strategic decisions of the leading LPG shipping company, potentially fostering operational synergies and enhancing value for both parties. The integration of Avance Gas' VLGC fleet into BW LPG's operations could lead to operational efficiencies, economies of scale, and better access to BW LPG's in-house trading division and terminal infrastructure.

As a significant shareholder, Avance Gas gains exposure to BW LPG's diversified revenue streams and stable income base, reducing its dependency on volatile charter markets. This strategic move aligns with Avance Gas' core values of stability, predictability, and consistent growth, as it seeks 'boring but lucrative' investments in under-owned sectors like energy stocks.



As Avance Gas' influence within BW LPG grows, it will be crucial for the company to monitor BW LPG's performance closely and ensure its investment aligns with its core values. While potential synergies abound, Avance Gas must also be mindful of the increased exposure to BW LPG's operational challenges and market fluctuations. By maintaining a balanced portfolio and prioritizing risk management, Avance Gas can navigate the energy sector's cyclical nature, positioning itself for consistent growth.

In conclusion, Avance Gas' successful completion of the sixth VLGC delivery to BW LPG has strengthened its strategic influence within the LPG shipping industry. As a significant shareholder, Avance Gas stands to benefit from BW LPG's integrated operations and market leadership, while also contributing to the company's growth and profitability. By focusing on stability, predictability, and consistent growth, Avance Gas has once again demonstrated its commitment to-valued investments in the energy sector.