The tanker shipping company Dorian LPG has put the dual-fuel newbuild “Areion” into service. In future, it will transport both liquid gas and ammonia.
The ship was built by Hanwha Ocean Heavy Industries at the Okpo shipyard in South Korea. The tanker has a capacity of 93,000m³ and the dual-fuel propulsion system allows the use of liquefied petroleum gas (LPG) in addition to heavy fuel oil. The “Areion” will be deployed as part of a charter in the Helios LPG pool, a joint venture between Dorian LPG and MOL Energia based in Copenhagen and Singapore.
It is the second LPG dual-fuel vessel fully owned by Dorian. Together with a total of four chartered vessels, it strengthens the company’s fleet. This brings the proportion of low-emission ships with alternative fuels in the fleet to 20%.
The “Areion” is equipped with a hybrid scrubber, which is said to emit lower levels of sulphur oxides, particulate matter and soot than the low-sulphur heavy fuel oils (VLSFO) currently widely used on the marine fuel market. The ship’s main engine will run on LPG, reducing CO₂ emissions by around 20% as well as emissions of sulphur oxides, particulate matter and other pollutants.
“The addition of the ‘Areion’ to our fleet underscores Dorian’s commitment to the exploration and application of advanced marine technologies,” said President and CEO John C. Hadjipateras. “The new vessel will further enhance Dorian’s outstanding emissions profile, which has been achieved through the use of hybrid scrubbers, LPG dual-fuel engines, energy-saving devices and power optimization systems shared by our onboard and shore teams. Scrubbers and LPG dual-fuel engines offer the potential to increase yields through optimized fuel selection, as does the Areion’s ability to carry full loads of LPG and ammonia.”
The “Areion” is equipped with alternative marine power (AMP) and can perform all port operations using only shore power in any port where it is provided. According to Dorian, this feature aims to promote zero-emission port operations. The vessel is also prepared for operation with a battery energy storage system (BESS) and can be operated with a hybrid battery management system. BESS enables the optimization of onboard power generation systems, avoiding power outages while continuously meeting onboard energy needs.
At the same time as the delivery, Dorian LPG took out a loan of $62.9 million from Citibank NA in Hong Kong. This loan is secured by export insurance from Korea Trade Insurance Corporation (“K-Sure”). In addition, a loan was taken out from Nordea to finance the final payment for the delivery as well as other fees and costs in connection with the delivery. The commercial tranche of the loan comprises $20.7 million and was guaranteed solely by Nordea with a term of seven years and a margin of 1.8% above the SOFR rate.
Citibank also provided a further facility of $42.2 million which is guaranteed as to principal and interest by K-Sure. This facility has a term of twelve years and a margin of 1% above the SOFR rate. The facility includes customary covenants and the provision of collateral.
