Dorian LPG Orders Three LPG Dual-Fuel Panamax VLGCs for $345 Million
Key Takeaways
- •Dorian LPG ordered three 90,000 cbm dual-fuel Panamax VLGCs from Hanwha Ocean for roughly $345 million, with deliveries in June, September, and December 2030.
- •The new vessels will use dual-fuel engines capable of running on LPG or low-sulphur conventional fuel, along with a shaft generator system for onboard power at sea.
- •The Panamax beam allows the carriers to transit the older Panama Canal locks, an option unavailable to larger VLGC sizes constrained by the newer locks.
- •Dorian secured a $368.4 million seven-year credit facility that consolidates four existing loans, simplifying its debt structure.
- •The company has fixed 99% of calendar days for the quarter ending September 30 at rates above $88,000 per day, excluding demurrage.
Dorian LPG has ordered three 90,000 cbm dual-fuel Panamax very large gas carriers (VLGCs) from Hanwha Ocean for a total of about $345 million, with deliveries scheduled for June, September, and December 2030.
In a statement released on Friday, the Stamford, Connecticut-based owner said the ships will be fitted with dual-fuel engines capable of running on LPG or conventional low-sulphur fuels, together with a shaft generator system providing onboard power generation while at sea. LPG as a marine fuel produces lower CO2 emissions than conventional fuel oil, one of the main reasons a growing number of VLGC owners have opted for dual-fuel designs in recent orders. Hanwha Ocean, formed after Hanwha Group acquired the former Daewoo Shipbuilding & Marine Engineering in 2023, is one of the major South Korean yards building these carriers.
According to the company, the hull forms and main engines are optimised for larger-diameter propellers and energy-saving devices around them, while the Panamax dimensions give charterers the flexibility to transit the older Panama Canal locks. That transit flexibility matters because the newer, larger Panama Canal locks constrain the biggest VLGC sizes, so Panamax-beam vessels retain access options that larger ships lose.
"These newbuildings reflect our measured approach to fleet renewal coupled with a capital allocation strategy that drives long-term shareholder value creation," said chairman, president, and CEO John C. Hadjipateras.
The order expands a fleet that the company puts at 25 VLGCs, six of which are dual-fuel ECO ships. It follows earlier dual-fuel additions to the fleet as part of the same renewal strategy.
Separately, Dorian has secured a new $368.4 million seven-year credit facility that consolidates four existing loans, a refinancing step that simplifies the company's debt structure alongside the newbuilding commitment.
Dorian also estimates it has fixed 99% of its calendar days for the quarter ending September 30 at a rate above $88,000 per day, excluding any demurrage earned on voyages completing in September. That booking level points to firm charter-market conditions for VLGCs heading into the quarter.
Source: Ship & Bunker
