U.S.-headquartered LPG shipping company Dorian LPG has placed an order for the construction of a Very Large Gas Carrier (VLGC) /ammonia carrier(VLAC).
The vessel is anticipated to be delivered in the third quarter of 2026, and Dorian has already made first installment payment of $23.8 million in January 2024.
“We placed an order to build a new VLGC/AC as we believe in the long-term fundamentals in the LPG market and the potential for ammonia transportation. With the geopolitical environment remaining very challenging, as highlighted by recent hostilities in the Red Sea, we are particularly mindful of the safety of our seafarers.” John C. Hadjipateras, CEO of Dorian LPG said.
The shipowner did not disclose further details on the order nor the name of the shipbuilder that secured the deal.
South Korean shipyards have been on the receiving end of multiple VLAC orders over the recent period amid forecasted surge in demand for the seaborne transportation of ammonia.
The VLGC owner and operator added that it has secured a 2023 A&R Debt Facility (amending and restating the 2022 Debt Facility) to upsize the revolving credit facility amount to $50 million and added a new, uncommitted accordion term loan facility, worth up to $100 million.
In addition, Dorian LPG revealed it was looking into potential options for retrofitting current vessels’ cargo specifications to include ammonia.
The company is also exploring the potential for onboard carbon capture and storage (OCCS) technologies on its vessels and is closely monitoring developments in the commercial utilization of CO2, particularly within the marine transportation sector.
Dorian LPG’s fleet currently consists of twenty-five modern VLGCs, including four dual-fuel LPG vessels.