BW LPG India cashes in on ageing VLGC

BW LPG India Fleet Renewal Moves Forward with BW Lord Sale

BW LPG India has taken another step in its BW LPG India fleet renewal strategy by agreeing to sell the 2008-built very large gas carrier (VLGC) BW Lord. The transaction follows the company’s recent vessel acquisitions and reflects its strategy of modernising the fleet while taking advantage of favourable second-hand vessel values.

BW Lord Sale Supports Fleet Modernisation

BW LPG India, which is 52% owned by BW LPG, has agreed to sell BW Lord as part of its long-term fleet renewal programme. The vessel will continue operating under its new owner after delivery.

The transaction is expected to generate approximately US$61 million in cash proceeds and deliver an estimated US$25 million accounting gain. Delivery of the vessel is scheduled before the end of 2025, with BW LPG India continuing to earn operating income from the ship until the handover takes place.

Recent Vessel Purchases Strengthen the Fleet

The sale comes shortly after BW LPG India expanded its fleet by acquiring the 2015-built BW Chinook and BW Pampero.

According to the company, the combination of selling an older vessel while purchasing newer tonnage allows it to benefit from favourable conditions in the second-hand shipping market and accelerate its fleet renewal strategy.

BW LPG Chief Executive Officer Kristian Sørensen said the company is actively renewing BW LPG India’s fleet while capitalising on strong second-hand asset values.

“We are taking actions toward fleet renewal of BW LPG India while leveraging strong second-hand asset values. This move clearly shows how quickly we can adapt ourselves to the market and generate value.”

BW LPG India’s Position in the Indian LPG Market

Based in Chennai, BW LPG India currently operates a fleet of eight Very Large Gas Carriers (VLGCs). The company transports approximately 20% of India’s LPG imports, making it one of the country’s major LPG shipping operators.

BW LPG India was established in 2017 as a joint venture between BW LPG and Global United Shipping. In 2021, Maas Capital Shipping acquired a 42% stake in the business.

Fleet Renewal Remains a Strategic Priority

The sale of BW Lord, combined with the recent addition of newer VLGCs, demonstrates BW LPG India’s continued focus on operating a younger and more efficient fleet. The company aims to strengthen operational performance while creating value through disciplined fleet management and timely asset transactions.