The tanker operator Dorian LPG is expanding its fleet with three newbuilds in the VLGC class. They are being built by the South Korean company Hanwha Ocean.
The vessels are VLGCs (Very Large Gas Carriers), each with a capacity of 90,000 m³. They will be fitted with dual-fuel propulsion systems and are designed to be capable of running on both LPG and conventional fuels in future. A shaft generator system will be installed on board to generate electricity. According to Dorian, the hull shape and main engines are to be optimised for the use of larger-diameter propellers and for energy-saving devices in the propeller area, thereby increasing the ships’ overall energy efficiency.
The contract, which was concluded with the South Korean shipbuilder Hanwha Ocean, is worth a total of $345 million. The three vessels are due to be delivered in June, September and December 2030.
“These newbuilds reflect our prudent approach to fleet renewal, coupled with a capital allocation strategy aimed at creating long-term value for shareholders,” said John C. Hadjipateras, the company’s Executive Director, President and CEO. “In addition to providing commercial flexibility for our charterers to transit the ‘old’ locks of the Panama Canal, these newbuilds are being constructed in line with our long-term strategy: we are investing in technologically advanced vessels that enhance our trading profile and support our commitment to decarbonisation.”
According to current estimates, the company’s operating fleet will be operating at almost full capacity this quarter. The vessels are firmly booked for “99% of calendar days” at a daily rate of over $88,000, Dorian LPG announced. However, this figure does not yet include any potential demurrage charges that may arise for voyages concluding in September 2026.
New seven-year loan
The company secured a new seven-year loan facility at the beginning of September. The facility amounts to $368.4 million. According to the company, it is intended to refinance existing liabilities arising from the ‘2023 A&R Facility’, the Japanese financing for the vessels ‘Cougar’ and ‘Cresques’, and the ‘Commander’ tranche of the ‘BALCAP Facility’. The facility comprises a term loan of $213.4 million and a revolving credit facility of $155.1 million.
As the ‘Cresques’ will be included in the credit facility at the end of September, $193.8 million will be drawn down upon completion; a further $16 million will be drawn from the revolving credit facility to refinance the ‘Clermont’ prior to its handover to the new owners in October. In addition, the facility includes a so-called accordion option (an option to increase the loan amount) of $200 million to support the company’s future growth.
The banking syndicate is led by the coordinating bookrunners Nordea Bank AbP (New York branch) – which also acts as agent, coordinator and security trustee – and Skandinaviska Enskilda Banken AB (Publ). Other bookrunners and mandated lead arrangers are Crédit Agricole Corporate & Investment Bank, BNP Paribas, Danish Ship Finance A/S, DNB Carnegie, Inc., ING Capital LLC and Oversea-Chinese Banking Corporation (London branch). Crédit Agricole Corporate & Investment Bank is also acting as sustainability coordinator, as the facility includes a sustainability-linked component.
“We are delighted to finalise this new financing with a highly respected group of banks with whom we have been working for many years,” said Ted Young, CFO and Treasurer. “When fully utilised, the facility consolidates four existing credit lines into a single one, enabling daily savings on interest and principal repayments. Thanks to the revolving credit component and the accordion option, the facility also provides significant financial flexibility for growth and fleet renewal.”
