London-based small-scale player Avenir LNG is in advanced talks to secure work for the next three ships in the company’s newbuilding program.
“The company is in advanced negotiations in relation to LNG supply agreements to be serviced via the next three ships – Avenir Aspiration, Avenir Ascension and Avenir Allegiance,” Avenir said in its first-half report on Wednesday.
The joint venture of Stolt-Nielsen, Hoegh and Golar plans to take delivery of the 7,500-cbm Avenir Aspiration and Avenir Ascension as well as the 20,000-cbm Avenir Allegiance from China’s CIMC SOE this year.
The company’s dual-purpose bunkering and supply vessel Avenir Aspiration will serve the company’s Higas terminal located on the Italian island of Sardinia.
However, Avenir says the “monetization of additional capacity on Avenir Aspiration to supply additional points of LNG demand is entirely consistent with the company’s strategy of deploying flexible assets to a region which can serve multiple customers – reducing overall supply chain costs.”
Moreover, Avenir aims to conclude the relevant commercial agreements for each of its three newbuild vessels within the third quarter of this year.
Avenir has also one more 20,000-cbm vessel on order at CIMC SOE, but it now plans to take delivery of this vessel named Avenir Achievement in 2022.
Two new vessels boost revenues
The small-scale firm already took delivery of two 7,500-cbm vessels, Avenir Advantage and Avenir Accolade, from Keppel Offshore & Marine’s Nantong yard.
Avenir Accolade started its three-year bareboat charter with LNG Power, a unit of New Fortress Energy, while Avenir Advantage works for Petronas off Malaysia and the region.
Revenues increased by $5.8 million from the first half last year to $6.2 million in the January-June period this year following the delivery of the first two vessels, Avenir said.
Also, the company completed a capital injection of $34.5 million in the period from its three founding shareholders, taking the total capital injection to $182 million.
“Demand remains robust for the small-scale LNG supply solutions Avenir is offering to the market. Our strategy of developing flexible assets is robust and proving successful, enabling us to serve multiple customers and segments from a single asset,” CEO Peter Mackey, said.
He said the entry into operation of the company’s first LNG receiving and truck-loading terminal in Sardinia marked a “major milestone for Avenir and for the island of Sardinia.”
Avenir expects utilization of the terminal to “grow significantly” with the company’s vessel, Avenir Aspiration, following delivery of the ship later this year, Mackey said.
