Dorian LPG Ltd (NYSE: LPG), an owner and operator of very large gas carriers (VLGCs), has entered into an agreement with Hanwha Ocean to build three 90,000 cbm dual-fuel Panamax VLGCs for a total price of approximately $345 million. The three vessels are scheduled for delivery in June, September and December 2030. The newbuildings will feature dual-fuel engines capable of operating on LPG and conventional low-sulphur fuels. They will also be equipped with a Shaft Generator system for onboard power generation during sea passages.
The vessels will incorporate hull forms and main engines designed to accommodate larger-diameter propellers and energy-saving devices around the propellers. These features are intended to improve overall vessel efficiency and support Dorian’s fleet renewal and decarbonisation efforts.
John C Hadjipateras, Chairman, President and CEO, Dorian LPG, said, “These newbuildings reflect our measured approach to fleet renewal coupled with a capital allocation strategy that drives long-term shareholder value creation.” He added that the vessels would provide charterers with commercial flexibility to transit the old Panama Canal locks while continuing Dorian’s approach of investing in technologically advanced ships.
Dorian also provided an update on its fleet chartering position for the quarter ending September 30, 2026. Based on the close of business on September 15, the company estimates that it has fixed 99% of its calendar days at a rate exceeding $88,000 per day. The estimate excludes potential demurrage that may be earned on voyages completed during September.
The company also announced that it entered into a new seven-year $368.4 million credit facility on September 2, 2026. The facility will refinance existing indebtedness under the 2023 A&R Facility, Cougar and Cresques Japanese Financings, and the Commander tranche of the BALCAP Facility.
The facility carries a margin of 140 basis points over SOFR and has an age-adjusted profile of 22 years. It comprises a $213.4 million term loan and a $155.1 million revolving credit facility. At closing, $193.8 million will be drawn, while $16 million will be drawn under the revolving facility to refinance the Clermont before its delivery to new owners in October. The facility also includes a $200 million accordion facility.
Ted Young, Chief Financial Officer and Treasurer, said the facility would consolidate four existing facilities into one and provide savings in interest and principal amortisation when fully drawn. He added that the revolving and accordion facilities would provide flexibility for fleet renewal and future growth.
The syndicate includes Nordea Bank AbP New York Branch, Skandinaviska Enskilda Banken AB, Crédit Agricole Corporate & Investment Bank, BNP Paribas, Danish Ship Finance A/S, DNB Carnegie, Inc., ING Capital LLC and Oversea-Chinese Banking Corporation, London Branch. Crédit Agricole will also serve as Sustainability Coordinator, with the facility including a sustainability-linked feature.
Dorian LPG is an owner and operator of modern VLGCs transporting liquefied petroleum gas globally. Its fleet comprises 25 modern VLGCs, including six dual-fuel ECO VLGCs, 17 ECO VLGCs and two modern VLGCs. The company has offices in Stamford, Connecticut; Copenhagen, Denmark; and Athens, Greece.
