Dorian LPG is renewing its fleet in a red-hot VLGC market, ordering one new very large gas carrier at HD Hyundai while selling three older vessels for a combined $256m, according to Splash247. The moves signal continued confidence in LPG transportation demand and come as spot earnings for VLGCs push sharply higher.
Newbuild and Sale Details
Under CEO John Hadjipateras, Dorian LPG has signed a contract for a 90,000 cu m VLGC priced at approximately $115m. The vessel is a dual-fuel panamax unit designed to transit the older locks of the Panama Canal, and delivery is scheduled for July 2029.
On the divestment side, the company struck deals to sell three VLGCs: the 2014-built 'Corsair' and two 2015-built vessels. The combined proceeds total about $256m, and the ships should change hands by the fourth quarter of this year.
| Vessel | Year Built | Estimated Sale Price |
|---|---|---|
| Corsair | 2014 | Part of $256m total |
| Two unnamed VLGCs | 2015 | Part of $256m total |
Soaring VLGC Earnings
The fleet move comes as VLGC earnings have pushed sharply higher. Dorian LPG disclosed that it had fixed 99% of its available days for the quarter ending June 30 at over $68,000 per day. Looking ahead, the company had fixed 34% of its days for July at over $100,000 per day.
Fleet Composition
Following the transactions, Dorian LPG currently owns and operates 27 VLGCs, comprising:
- 6 dual-fuel eco vessels
- 19 eco vessels
- 2 modern VLGCs
Shipper and Operator Implications
For shippers and charterers, the strong VLGC market means higher freight costs for LPG cargoes. Dorian LPG's fleet renewal likely indicates that supply of modern tonnage will increase, but the 2029 delivery means near-term supply remains tight. The sale of three older ships could reduce available capacity in the resale market.
Watch List
- VLGC spot rate trajectory: July fixing at $100k+/day may set a benchmark for Q3 contracts.
- Further fleet renewal: Dorian LPG may order additional vessels if the market remains strong.
- Panama Canal transit: The newbuild's ability to use older locks gives scheduling flexibility amid canal restrictions.
"We are confident in the growth prospects of the LPG transportation market," said chairman, president, and CEO John Hadjipateras, according to Splash247.
As Dorian LPG executes its disciplined fleet renewal strategy, the LPG shipping sector will watch for similar moves from other owners. The combination of high rates and aging tonnage may drive more newbuild orders in the coming months.
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