Frontline Aquisition Of New VLGC Contracts
Bermuda-based Frontline 2012 Ltd. has concluded newbuilding contracts for two 83,000 CBM Gas Carriers [VLGCs] at a total contractual value of $127 million. The deliveries of the vessels are expected to take place in 2014.
Furthermore, the Company has secured four fixed price optional contracts at a total contractual value of $254 million. The deliveries of the optional vessels are expected to take place in 2014 and 2015. Hemen Holding Ltd. will be responsible for the performance guarantees towards the yard on the abovementioned contracts.
Chairman John Fredriksen said: “We are excited about the prospect for Frontline 2012 to develop a profitable business within the LPG market. The high growth in LPG production, combined with a low newbuilding orderbook and historic low new building prices for fuel efficient tonnage creates a unique opportunity to enter this market. We are hopeful that Frontline 2012 within three years can be one of the major players in this market. “
