Dorian moves along with LPG-as-fuel conversion plans

Signing ceremony placard says it all in terms of the technology involved

MAY 4, 2018 — Stamford, CT, headquartered Dorian LPG Ltd. (NYSE: LPG) reports that it has entered into a memorandum of understanding with Hyundai Global Service Co., Ltd to undertake research and preliminary engineering studies to upgrade the main engines of up to 10 of the company’s very large gas carriers to dual fuel technology utilizing liquefied petroleum gas as fuel in anticipation of upcoming environmental regulations to reduce sulfur emissions.

“The cargo transported by our vessels is an energy source with well-documented environmental benefits relative to other fuels,” said Dorian LPG Chairman & CEO John Hadjipateras. “We are undertaking this initiative with the dual goals of acting as a responsible corporate citizen and potentially achieving a significant competitive advantage that will benefit both our customers and shareholders.”

Ki Sun Chung and Kwang Hean An, Co-CEO and President of HGS added, “We are pleased to be partnering with a first-class organization with whom we have a long-standing relationship. Both HGS and Dorian LPG are committed to the advancement of technology that provides the global shipping industry alternatives to achieve compliance with important environmental mandates.”

This initiative follows the conclusion of a study announced in September 2017 (see earlier story) by Dorian LPG and classification society ABS to evaluate the use of LPG as marine fuel in advance of the IMO mandate to reduce sulfur emissions by approximately 85% effective January 1, 2020 .

Dorian LPG believes in the viability of LPG as an attractive and cost-effective alternative fuel that is widely available and inherently compliant with the IMO mandate. LPG as a fuel source has a significant advantage over other potential sources, including LNG, methanol and marine gas oil given the abundant availability of LPG from the shale exploration boom and the existing global distribution network and onshore and floating storage infrastructure for LPG.

As part of its recent new building program, Dorian LPG proactively included enhancements to its VLGC vessels design to allow for the option of using LPG as a marine fuel.