Norwegian owner Avance Gas' new CEO Ulrik Andersen has revealed a "very positive market outlook" for VLGCs heading into the remainder of 2019.
Speaking on the company's second quarter conference call, he said Avance is in a very comfortable place, having posted net profit of $9.83m, with TCE earnings more than doubling on the back of increased US exports.
Andersen said the widening of the arbitrage between the Far East and the US Gulf had helped drive business and the US remains "arguably the engine" for future growth.
"It is full with LPG. With domestic consumption expected to be very low, all of this is available for export," he added.
But will the exports happen?
Andersen said export capacity is growing, but actual shipments will depend on price.
More and more gas is being shipped to Asia, and the company does not see this changing.
On the supply side, Andersen believes owners are satisfied with their fleet positions and net fleet growth will only be 5% over the next three years.
A total of 36 ships are on order - 13% of the total fleet.
The new IMO 2020 regulations will see VLGCs drydocked for scrubber retrofittings, taking out capacity, Andersen said.
Even those already fitted with the systems will need a few days in shipyards to have tanks cleaned, boosting the tonne-mile outlook for the end of 2019 and the start of 2020.
The CEO also revealed he will be reviewing the company's operations over the next few months to see what can be changed and improved.
