Dorian LPG Ltd. has entered into contracts with South Korea's Hanwha Ocean to construct three 90,000-cbm dual-fuel Panamax very large gas carriers (VLGCs), with deliveries scheduled for June, September, and December 2030, at a total cost of approximately $345m.

The three vessels will be equipped with dual-fuel engines capable of operating on LPG and conventional low-sulphur fuels, as well as a shaft generator system that enables onboard power generation during sea passages. According to Dorian, hull forms and main engines have been optimised to accommodate larger-diameter propellers and energy-saving devices, with the aim of enhancing overall energy efficiency.

The Panamax dimensions of the newbuildings will allow them to transit the original Panama Canal locks, providing commercial flexibility for charterers in addition to what the company describes as a long-term commitment to investing in technologically advanced vessels to support decarbonisation goals.

John C. Hadjipateras, Chairman, President, and CEO of 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."

Fleet utilisation and chartering

Dorian also disclosed estimates for its fleet for the quarter ending 30 September 2026. Based on its position at the close of business on 4 September, the company said it had fixed 99% of its available calendar days at a rate in excess of $88,000 per day, with the figure excluding any potential demurrage that may be earned for voyages completing during September.

New credit facility

Separately, on 2 September, Dorian entered into a new seven-year, $368.4m credit facility to refinance existing debt, including obligations under its 2023 amended and restated facility, the Cougar and Cresques Japanese financings, and the Commander tranche of the BALCAP facility.

The new facility carries a margin of 140 basis points over SOFR, with an age-adjusted profile of 22 years, and is structured as a $213.3m term loan and a $155.1m revolving credit facility. An additional $200m accordion feature has been included to support future growth. At closing, $193.8m will be drawn, with the Cresques joining the facility at the end of September. A further $16m will be drawn on the revolving credit facility to refinance the Clermont ahead of its delivery to new owners in October.

The facility syndicate is led by coordinating bookrunners Nordea Bank AbP New York Branch, acting also as agent, coordinator, and security agent, and Skandinaviska Enskilda Banken AB (Publ). Bookrunners and mandated lead arrangers include 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 Corporate & Investment Bank will also serve as sustainability coordinator, as the facility incorporates a sustainability-linked feature.

Ted Young, Chief Financial Officer and Treasurer, stated: "We are pleased to conclude this new facility with a highly regarded group of banks with whom we have worked for many years. The facility, when fully drawn, will consolidate four facilities into one and generate overall savings in interest and principal amortisation per day. The facility provides ample financial flexibility for growth and fleet renewal with its revolving credit and accordion features."

Dorian LPG currently operates a fleet of 25 VLGCs, comprising six dual-fuel ECO VLGCs, seventeen ECO VLGCs, and two modern VLGCs. The company is listed on the New York Stock Exchange under the ticker LPG and has offices in Stamford, Connecticut; Copenhagen; and Athens.