BW LPG India, a 52%-owned subsidiary of Oslo- and New York-listed BW LPG, has agreed to sell the 2007-built very large gas carrier (VLGC) BW Elm to an undisclosed buyer for net cash proceeds of approximately $64m, generating a net book gain of about $36m. The vessel is scheduled for delivery to its new owner by mid-August 2026, according to the company.
Transaction Details
The sale of the BW Elm – a vintage VLGC built in 2007 – was announced by BW LPG on July 10, 2026. On a 100% basis, the transaction yields net cash proceeds of ~$64m and a net book gain of ~$36m. Kristian Sørensen, chief executive officer of BW LPG, said the company was capitalising on strong secondhand values for older ships. He noted that the 2007-built ship had been sold at a level equivalent to a newbuilding price of about $248m.
Analysts at SEB commented that the deal cleared above their asset value marks and suggested that older VLGC values may be stronger than reflected in some net asset value models. The bank described divesting older vessels into a strong secondhand market to help fund BW LPG’s newbuilding programme as a sensible use of the cycle.
Fleet Renewal Strategy
The sale comes just weeks after BW LPG placed one of the largest VLGC orders of the year. The company recently returned to the newbuilding market with an order for eight 90,000 cu m panamax VLGCs at HD Hyundai Heavy Industries in South Korea. That contract is worth about $940m, with deliveries due from the start of 2029 to the second quarter of 2030.
BW LPG, one of the largest owners and operators of VLGCs with a fleet of about 50 ships, said at the time that the order formed part of its fleet renewal programme. The BW Elm sale fits a wider pattern of owners recycling capital out of older VLGCs while the market continues to reward large gas carrier tonnage.
| Metric | Value |
|---|---|
| Sale gain (net book) | ~$36m |
| Net cash proceeds | ~$64m |
| Newbuilding order value | ~$940m |
| Newbuilding vessels | 8 × 90,000 cu m panamax VLGCs |
| Newbuilding delivery window | Q1 2029 – Q2 2030 |
Market Implications for LPG Shipping
The transaction highlights sustained strength in the secondhand VLGC market, which continues to reward owners of older tonnage. For shippers and logistics operators in the LPG supply chain, the sale indicates that asset values remain elevated, potentially influencing charter rates and fleet availability. The proceeds from the sale will help fund BW LPG’s substantial newbuilding programme, ensuring the company maintains a modern, efficient fleet to serve the growing Indian market.
BW LPG India has grown into the country’s largest owner and operator of VLGCs, and this transaction is part of an ongoing reshaping of its operations in India. The combination of selling older vessels and ordering new ones positions the company to meet future demand while managing capital efficiently.
Sources:
