London owner Foresight Group has added another VLGC to its expanding gas fleet in a deal with John Fredriksen’s Avance Gas.
Two weeks ago, Oslo-listed Avance Gas said the disposal of the 84,000-cbm Promise (built 2009) should generate $20m in net cash proceeds and a book gain of $7.5m, without naming the buyer.
But now Foresight executive chairman and founder Ravi Mehrotra has confirmed to TradeWinds that his company is behind the purchase.
“Our team is making strong growth on our medium-term strategy to build a shipping fleet of 10 VLGCs by end of 2023,” he said.
VesselsValue estimated the gas carrier was worth $52m at the time of the announcement, and $53m now.
Brokers quoted the sales price at $50m, including a time charter running until September next year.
The Promise was bought from the Angelicoussis group as part of an en-bloc deal for $72m in 2012.
It was chartered to Hindustan Petroleum in India in 2021 for two years and a year of options at $30,000 per day.
In March, Foresight snapped up Avance's 84,100-cbm Providence (built 2008) for $46.5m, and then added Belgian owner TransPetrol Maritime Services’ 82,000-cbm VLGC Progress (built 2009) for $50m.
Foresight also operates the 80,200-cbm VLGC Surya Veerya (built 2008), financed by US private equity giant Oaktree Capital Management’s Fleetscape division in the UK.
Team expanded
Mehrotra also told TradeWinds that the Dubai and Mumbai offices are being strengthened with “shipping and finance professionals to support the aggressive expansion of our shipping fleet”, as well as the development of its compressed natural gas (CNG) project in India.
This involves a new CNG terminal and other cargo terminals at New Port Bhavnagar in Gujarat, northwest India, as well as an export facility in the Middle East.
The aim is to carry gas from Ras Al Khaimah in the United Arab Emirates to India.
Foresight announced this $500m deal in 2020, saying it would build vessels and terminals.
