Astomos Energy orders new VLGC for expanded Panama Canal

The newbuilding tanker, scheduled to be delivered in the fourth quarter of 2016, will be constructed at Kawasaki Heavy Industries, Platts quoted Astomos Energy as saying.

Financial details of the deal were not disclosed.

Astomos Energy is also renewing its fleet as it plans to scrap tankers which are 20-25 years old and build new VLGCs to replace them. The Japanese LPG supplier also maintains or expands its use of chartered vessels to retain a competitive fleet amid projected increases in LPG output from the US and West Africa, the report said.

The latest order is Astomos Energy’s second new VLGC that can transit through the expanded Panama Canal. The company had in late March ordered a 83,000-cu m VLGC slated for delivery in the first half of 2016.

As of July, Astomos Energy operates a fleet of 21 VLGCs, of which six are owned and 15 are time-chartered.