AsiaGas

BW LPG looks to bank $50m from Indian venture as it offloads six VLGCs

Oslo-listed BW LPG has divested six very large gas carriers (VLGCs) and is said to be in advanced talks with an investor for the acquisition of a minority stake in its subsidiary, BW LPG India.

The Chennai-headquartered BW LPG India has taken four VLGCs from its Singapore-based parent, doubling its fleet to eight vessels. BW LPG India is the largest owner and operator of India-flagged VLGCs. The last vessel is expected to be delivered in Q2 2022.

Meanwhile, BW LPG offloaded the 2010-built VLGC pair BW Sakura and BW Niigata without disclosing transaction details. VesselsValue estimates the pair is worth around $53m and $54m respectively. The ships will be delivered for further trading in Q1 2022. The sale is expected to generate close to $72m and a net profit of $13.7m. With these sales, BW LPG owns and operates a fleet of 40 VLGCs.

The company is also in discussions with an undisclosed investor to buy a minority stake in BW LPG India for $50m in cash. Following this transaction, BW LPG will continue to be the majority shareholder of BW LPG India. The unit was founded with Global United Shipping in July 2017, initially on a 50:50 basis, but is now 85% controlled by BW LPG.

Adis Ajdin

Adis is an experienced news reporter with a backgroud in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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