BW LPG Sells Two VLGCs to BW LPG India for Fleet Expansion and Renewal Amid Rising LPG Demand
BW LPG Limited (“BW LPG,” OSE ticker code: “BWLPG.OL,” NYSE ticker code: “BWLP”) has announced the signing of a Memorandum of Agreement (MOA) with BW LPG India to sell two Very Large Gas Carriers (VLGCs), BW Pampero and BW Chinook, at a price of approximately USD 75 million per vessel. This strategic transaction is part of BW LPG’s ongoing efforts to expand and renew its fleet in the Indian market, aligning with the growing demand for Liquefied Petroleum Gas (LPG) in the region. The delivery of these vessels, acquired as part of the recent Avance Gas transaction, is expected to take place in Q3 2025.
Strengthening BW LPG India’s Market Leadership
BW LPG India currently operates the largest fleet of VLGCs in India, comprising seven vessels following the recently announced sale of BW Cedar. With the addition of BW Pampero and BW Chinook, both built in 2015, the company will not only expand its fleet but also modernize it, ensuring compliance with the latest industry standards. This fleet renewal comes at an opportune time, as India continues to experience robust growth in LPG consumption, driven by government initiatives like the Atmanirbhar Bharat scheme (translated as “self-reliant India”) and increasing urbanization.
BW LPG India’s fleet is uniquely positioned to capitalize on this growth. As an Indian-flagged and Indian-operated entity, it facilitates seamless business operations while supporting the nation’s energy transition goals. The company’s fleet accounts for approximately 20% of India’s LPG imports, making it a critical player in meeting the country’s energy demands.
A Strategic Partnership Driving Growth
Established in 2017 as a joint venture between BW LPG Limited and Global United Shipping, BW LPG India is headquartered in Chennai. In 2021, Maas Capital Shipping B.V. acquired a minority stake of 42% in the company, with BW LPG retaining a controlling share of 52%. This collaboration underscores the shared commitment of all stakeholders to support India’s energy needs and promote sustainable growth.
Commenting on the transaction, Mr. Kristian Sørensen, CEO of BW LPG, stated: “With the addition of BW Pampero and BW Chinook, we are introducing modern, high-quality tonnage and increased capacity to our Indian-flagged fleet. We see immense potential in India and are proud to contribute to the continued expansion of the country’s LPG market. I would like to thank our partners, Maas Capital and Global United Shipping, for their trust and collaboration in driving sustained fleet renewal.”
Aligning with India’s Energy Transition Goals
The acquisition of these two vessels reflects BW LPG’s broader strategy to optimize and renew its fleet in key growth markets. By leveraging its strong commercial platform, BW LPG is well-positioned to support India’s transition to cleaner energy sources while navigating geopolitical uncertainties. LPG, a cleaner-burning fuel compared to traditional alternatives, plays a vital role in reducing carbon emissions and improving air quality—a priority for India as it strives to meet its climate commitments.
India’s LPG demand has been steadily rising due to increased adoption in households, industrial applications, and the transportation sector. BW LPG India’s expanded fleet will enable the company to meet this growing demand efficiently, ensuring reliable and timely deliveries to customers across the country.
About BW LPG: A Global Leader in LPG Shipping
BW LPG is the world’s leading owner and operator of LPG vessels, managing a fleet of Very Large Gas Carriers (VLGCs) with a total carrying capacity exceeding 4 million cubic meters (CBM). With over five decades of experience in LPG shipping, the company boasts a team of highly skilled seafarers and staff dedicated to providing flexible and dependable services to its global clientele. For more information about BW LPG, visit www.bwlpg.com.
BW LPG is part of the BW Group, a pioneering global maritime company with a diverse portfolio spanning shipping, floating infrastructure, deepwater oil and gas production, and sustainable technologies. Founded in 1955 by Sir Y.K. Pao, the BW Group controls a fleet of over 490 vessels, including the world’s largest gas fleet of 200 LNG and LPG ships. The group is also actively investing in renewable energy solutions, such as solar, wind, batteries, biofuels, and water treatment, reflecting its commitment to sustainability and innovation.
A Promising Future for BW LPG India
The sale of BW Pampero and BW Chinook to BW LPG India marks a significant milestone in the company’s journey to consolidate its leadership position in the Indian LPG market. By expanding and modernizing its fleet, BW LPG India is poised to play a pivotal role in addressing the nation’s energy needs while contributing to its long-term sustainability goals.
As India continues to embrace cleaner energy solutions, BW LPG remains committed to supporting this transformation through strategic investments and partnerships. With a focus on fleet renewal, operational excellence, and customer satisfaction, BW LPG is well-equipped to navigate the evolving energy landscape and deliver value to all stakeholders.
In conclusion, the transaction not only reinforces BW LPG’s dedication to fleet optimization but also highlights its confidence in India’s growth potential. By strengthening its presence in the Indian market, BW LPG is set to drive positive change and shape the future of LPG shipping in one of the world’s fastest-growing economies.
