BW LPG India, the 52%-owned subsidiary of New York- and Oslo-listed BW LPG, has agreed to sell the 2007-built, 82,300 cu m very large gas carrier (VLGC) BW Birch for continued trading, according to Splash247. The deal is expected to generate net cash proceeds of about $64m and a book gain of around $37m on a 100% ownership basis, with the vessel currently on time charter and due to be handed over to an undisclosed buyer by mid-November.
Disposal run at BW LPG India
The BW Birch transaction comes just six weeks after BW LPG India agreed to sell another 2007-built unit, BW Elm, for similar proceeds, Splash247 reported. That deal generated around $64m in net cash and a $36m book gain before the vessel was delivered in August. The two sales have therefore unlocked about $128m of cash and $73m of gains on a 100% basis.
The disposals form part of a broader clear-out of older tonnage at the Indian operation. Splash247 reported last September that BW LPG India was selling a 2008-built VLGC for around $61m in net cash, following the addition of two 2015-built ships acquired from BW LPG for about $75m each. The Indian unit had also moved to sell another 2007-built vessel in late 2024.
At the parent level, BW LPG sold a 2015-built VLGC in July that it had acquired through its $1bn-plus takeover of Avance Gas, generating another $38m in net cash and an estimated $17m gain, according to Splash247. Combined with the two Indian disposals announced since July, BW LPG and its subsidiary have lined up about $166m in cash proceeds and $90m in book gains from three ships.
| Vessel | Built | Net cash proceeds | Book gain | Timing/Buyer |
|---|---|---|---|---|
| BW Birch | 2007 | ~$64m | ~$37m | Handover by mid-November; undisclosed buyer |
| BW Elm | 2007 | ~$64m | ~$36m | Delivered August |
| 2015-built VLGC (ex-Avance Gas) | 2015 | ~$38m | ~$17m | Sold July |
| 2008-built VLGC | 2008 | ~$61m | Not stated | Sold September 2025 |
The two sales of BW Birch and BW Elm have unlocked about $128m in cash and $73m in gains, according to Splash247.
Newbuilding programme
BW LPG made its biggest newbuilding move in years in May, signing for eight 90,000 cu m panamax VLGCs at HD Hyundai Heavy Industries, Splash247 reported. The ships cost about $940m in total, or an average of roughly $117.5m each, and are scheduled to arrive between the start of 2029 and the second quarter of 2030.
Chief executive Kristian Sørensen described the latest sale as part of the company’s strategy of taking advantage of strong values for older ships while renewing the fleet, the report said. BW LPG stated that the transaction represented an age-adjusted value equivalent to a newbuilding price of around $248m, the same level it cited when selling the sistership in July.
Market context
The renewal programme comes with secondhand values supported by a firm VLGC market. According to Splash247, BW LPG reported average shipping earnings of $55,500 per available day in the first quarter and had already covered about 85% of its second-quarter days at around $81,000 per day when it reported in June. The company also noted that more than 9% of the global VLGC fleet was at least 25 years old, despite an orderbook of 130 ships.
- Average Q1 earnings: $55,500 per available day
- Q2 coverage: ~85% of days at ~$81,000 per day (as of June report)
- Global fleet age: >9% at least 25 years old
- Orderbook: 130 ships
BW LPG India was established in 2017 and remains the country’s largest owner and operator of India-flagged VLGCs, according to Splash247. The business contributed $29m of TCE income to BW LPG in the first quarter.
Implications for shippers and operators
For freight forwarders, logistics managers and shippers moving LPG on ocean routes, the disposal run at BW LPG India signals that major owners are rotating older tonnage out of active service while they wait for a new wave of 90,000 cu m panamax VLGCs ordered from HD Hyundai Heavy Industries, according to Splash247. The replacement vessels will not arrive until 2029 at the earliest, based on the delivery schedule reported by Splash247.
In the interim, the global VLGC pool still includes a substantial share of very old ships — more than 9% of the fleet is at least 25 years old, while the orderbook stands at 130 ships, BW LPG noted in its June report as cited by Splash247. The continued disposal of older tonnage, coupled with strong earnings — average shipping earnings of $55,500 per available day in Q1 and about 85% of Q2 days covered at roughly $81,000 per day — suggests owners are locking in attractive secondhand prices before the newbuildings arrive.
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