BW LPG Limited announced today new shipbuilding contracts have been signed with Daewoo Shipbuilding and Marine Engineering (DSME) for four Very Large Gas Carriers (VLGCs).
These newbuild slots had already been booked at DSME, however they became available again and BW LPD took the opportunity, the company says. Deliveries are planned for Q3 and Q4 2016.
Speaking about these contracts, Nicholas Gleeson, CEO of BW LPG, commented
“Whilst the exceptionally high rates of today are not likely to last forever, there are many years of anticipated growth in export volumes in this market, which elicits our desire to enhance our fleet and its capability.
These contracts now provide us an opportunity to grow or renew our VLGC fleet in the coming years, without adding further to the new building fleet on order.”
The delivered cost of these vessels, including interest and other costs, is likely to be approximately USD 290 million. The initial payments under the contracts are to be met from free cash and the revolving credit facility.