VLGC owner BW LPG has agreed to sell one of the older ships in its Indian venture as part of its ongoing fleet renewal programme.
The New York- and Oslo-listed unit of Singapore’s BW Group said its 52%-owned subsidiary, BW LPG India, has signed a deal to offload the 2008-built BW Lord for continued trading.
On a 100% basis, the transaction is expected to generate a net book gain of about US$25m and net cash proceeds of roughly US$61m. The ship will be delivered to its new owner before the end of 2025, with BW LPG India continuing to earn income from the vessel until handover.
The sale comes on the heels of BW LPG India’s recent purchases of the 2015-built BW Chinook and BW Pampero. BW LPG said the moves are part of a strategy to modernise its fleet while making use of favourable second-hand prices.
“We continue to advance our strategy to modernise BW LPG India’s fleet while capitalising on strong asset values in the second-hand market,” said BW LPG CEO Kristian Sørensen. “This is another transaction that underscores the agility of our commercial platform and our ability to unlock value in the current market environment.”
BW LPG India currently operates eight very large gas carriers, which together account for around 20% of India’s LPG imports. The Chennai-based company was formed in 2017 as a joint venture between BW LPG and Global United Shipping. Maas Capital Shipping acquired a 42% shareholding in 2021.
