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BW LPG India Sells Older Vessel as Part of Fleet Renewal program
The owner of VLCG, BW LPG, is going to sell one of its older vessels from one of its Italian ventures as a step towards its fleet renewal program.
The company’s Indian arm, BW LPG India, which is 52% owned by BW LPG, has agreed to offload the BW Lord, built in 2008, to start the fleet renewal program. The ship will keep operating under its new owner, and the deal is expected to bring in about US$61 million in cash and a profit of around US$25 million. The handover will happen before the end of 2025, and until then, BW LPG India will continue to earn money from the vessel.
Right after the two recent purchases of the 2015-built BW Chinook and BW Pampero, the sale happened. The company claims that they are taking advantage of lower prices in the second-hand market as a strategy to put the fleet renewal program in motion.
“We are taking actions toward fleet renewal of BW LGP India while leveraging strong second-hand asset values,” said BW LPG CEO Kristian Sorensen. “This move clearly shows how quickly we can adapt ourselves to the market and generate value.”
At the moment, BW LGP India, based in Chennai, which is working on its fleet renewal program, runs 8 enormous gas carriers that are responsible for 20% of India’s LPG imports. The company was launched in 2017 as a joint venture between BW LPG and Global United Shipping, with Maas Capital shipping buying a 42% stake in 2021.
