Dorian LPG Ltd. Takes Delivery of Dual-Fuel 93,000 Cubic Meter Newbuilding
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Key Terms
dual-fueltechnical
Dual-fuel describes equipment, vehicles, or power systems designed to run on two different types of fuel—typically a conventional fuel (like diesel) and an alternative fuel (like natural gas or hydrogen). For investors, dual-fuel capability matters because it acts like a built-in hedge: it can lower operating costs and regulatory risk by switching to the cheaper or cleaner fuel as conditions change, though it may require higher upfront investment and different maintenance.
hybrid scrubbertechnical
A hybrid scrubber is an exhaust-cleaning system installed on ships that combines two ways to remove sulfur and other pollutants from engine smoke: one that uses seawater to wash the gases and another that recirculates treated freshwater inside the system. For investors, it matters because the choice and flexibility of this equipment affects a vessel’s ability to meet emissions rules, influences fuel and maintenance costs, and can change resale or charter value—similar to how a hybrid car can switch modes to suit road and fuel conditions.
very low sulphur fuels oils (vlsfo)technical
Very low sulphur fuel oil (VLSFO) is a type of marine fuel refined to contain a much lower amount of sulfur than traditional bunker fuels, used to power large ships while meeting regulatory limits on sulfur emissions. It matters to investors because switching fuels changes operating costs, compliance risks and equipment needs across shipping and commodity markets—similar to a company changing to a cleaner but pricier raw material, which can affect margins, freight rates and supply-chain pricing.
alternative marine power (amp)technical
Alternative marine power (AMP) is a system that lets a docked ship plug into a shore-based electricity source so it can turn off its onboard engines and generators. Like plugging an electric car into a wall instead of idling the engine, AMP cuts fuel use, noise and pollution in port, which matters to investors because it affects operating costs, regulatory compliance, community relations and future capital spending for ships and ports.
battery energy storage system (bess)technical
A battery energy storage system (BESS) is a large-scale setup that stores electricity in rechargeable batteries and releases it when needed, like a giant rechargeable battery for the power grid. It matters to investors because it helps smooth out supply and demand, capture surplus renewable power, provide backup and short-term grid services that can earn recurring revenue, and can boost the value of generation and transmission assets as demand for flexible energy grows.
cold ironingtechnical
Cold ironing is supplying a docked ship with electricity from the shore so the vessel can turn off its onboard engines and generators. Like plugging a parked car into a charger instead of idling the engine, it cuts local air pollution, noise and fuel costs and can expose ports and shipping firms to new equipment, regulatory and utility costs or revenue opportunities that matter to investors.
sofrfinancial
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
Dual-Fuel LPG and Ammonia Gas Carrier “Areion” to Join Helios Pool
STAMFORD, Conn.--(BUSINESS WIRE)--
Dorian LPG Ltd. (NYSE: LPG) (the "Company" or "Dorian LPG"), a leading owner and operator of very large gas carriers (“VLGCs”), announced today the delivery of its 93,000 cubic meter (cbm) dual-fuel newbuilding named “Areion” an LPG and ammonia very large gas carrier (VLGC/AC) from Hanwha Ocean Heavy Industries Co., Ltd. at the Okpo Shipyard in South Korea. The “Areion” will commence employment on charter under the Helios LPG Pool, an entity jointly controlled by Dorian LPG Ltd and MOL Energia Pte Ltd., with offices in Copenhagen and Singapore. “Areion”, in Greek Mythology, is the name given to a black-maned horse known for its extraordinary speed, spoken wisdom, and significant powers.
The Areion - dual-fuel newbuilding VLGC/AC
This 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 its fleet.
The “Areion” is a dual-fuel ship that can run on LPG and fuel oil. It is equipped with a hybrid scrubber, which can operate in closed loop in ports or ECAs where emissions and effluent must either be very low or prohibited. This scrubber is designed to emit lower levels of sulphur oxides, particulate matter and black carbon than the very low sulphur fuels oils (VLSFO) widely used currently in the marine fuel markets. The ship’s main engine also operates on LPG as fuel which reduces CO2 emissions by approximately 20%, sulphur oxides, particulate matter (PM), and other pollutants.
John C. Hadjipateras, President and Chief Executive Officer of the Company, commented, “The addition of “Areion” to our fleet underscores Dorian’s commitment to the study and adoption of advanced marine technologies. 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”’sability to transport full cargoes of LPG and ammonia.”
“Areion” is fitted with Alternative Marine Power (AMP) equipment and can carry out all port operations exclusively with shore power in any port where cold ironing is available. This feature aspires to promote emission free port operations. 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, (Hong Kong branch) (“Citi”), supported by export insurance provided by the Korea Trade Insurance Corporation (“K-sure”), and Nordea Abp (New York branch) (“Nordea”) 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.
About Dorian LPG Ltd.
Dorian LPG is a leading owner and operator of modern VLGCs that transport liquefied petroleum gas globally. Dorian LPG's fleet of twenty-eight modern VLGCs currently includes six dual-fuel ECO VLGCs, twenty ECO VLGCs, and two modern VLGCs. Dorian LPG has offices in Stamford, Connecticut, USA; Copenhagen, Denmark; and Athens, Greece. For more information visit www.dorianlpg.com.
