Dorian LPG takes delivery of new 93,000 cu.m VLGAC Aerion

Photo: Dorian LPG

Stamford, Conn.-based Dorian LPG Ltd. (NYSE: LPG) has taken delivery of the Areion, a 93,000 cubic meter LPG and ammonia very large gas carrier (VLGC/AC).

Built at Hanwha Ocean’s Okpo Shipyard in South Korea, the dual-fuel vessel will commence employment on charter under the Helios LPG Pool, an entity jointly controlled by Dorian LPG Ltd and MOL Energia Pte Ltd.

Areion is the second wholly owned LPG dual-fuel ship being added to Dorian’s fleet along with the four chartered-in LPG dual-fuel ships raising the percentage of low emissions alternative fuel ships to over 20% of the Dorian LPG fleet.

Dorian LPG’s fleet of twenty-eight modern VLGCs currently includes six dual-fuel ECO VLGCs, twenty ECO VLGCs, and two modern VLGCs.

Able to run on LPG and fuel oil, Areion is equipped with a hybrid scrubber that can operate in closed loop mode in ports or ECAs where emissions and effluent must either be very low or prohibited.

“The addition of Areion to our fleet underscores Dorian’s commitment to the study and adoption of advanced marine technologies,” said John C. Hadjipateras, Dorian LPG’s president and CEO. ”The new ship will enhance Dorian’s superior emissions profile which has been achieved by the use of hybrid scrubbers, dual-fuel LPG engined ships, energy saving devices and performance optimization systems deployed collaboratively by our on board and shore side teams. Scrubbers and LPG dual fuel engines offer the potential to enhance earnings by optimizing the fuel choice, as does Areion’s ability to transport full cargoes of LPG and ammonia.”

Fitted with alternative marine power (AMP) equipment, Areion can carry out all port operations exclusively with shore power in any port where cold ironing is available. The ship is battery energy storage system (BESS) ready-fitted for hybrid battery power management system operation. BESS enables optimization of onboard power generation systems, eradicating blackouts while providing continuous peak shaving of energy requirements onboard.

Concurrently with the delivery, Dorian LPG borrowed $62.9 million from Citibank NA, (supported by export insurance provided by the Korea Trade Insurance Corporation (“K-sure”), and Nordea Abp to finance the final delivery payment and other fees and expenses associated with the delivery. The facility has a $20.7 million commercial tranche, solely underwritten by Nordea with a 7-year tenor and margin of 1.80% over SOFR, while Citi has provided a $42.2 million facility, guaranteed by K-Sure as to payment of principal and interest, with a 12-year tenor and a margin of 1.00% over SOFR. The facility contains customary covenants and granting of security interests.