J M Baxi Group has marked its entry into the liquefied petroleum gas (LPG) shipping sector by acquiring an 11-year-old Very Large Gas Carrier (VLGC) from New York Stock Exchange-listed Dorian LPG Ltd for approximately US$87.3 million, capitalising on a buoyant freight market where spot charter rates have surged to as high as US$150,000 per day.
Dorian LPG announced on Thursday that it had completed the sale of the 2015-built, Bahamas-flagged VLGC Constellation on July 27, generating cash proceeds of around US$87.3 million. However, it did not disclose the buyer’s identity.
According to market sources, the vessel has been acquired by J M Baxi Marine Energy Pte Ltd through a 50:50 joint venture with one of the world’s leading cash buyers of ships for recycling. Following the acquisition, the 84,000-cubic metre capacity carrier has been reflagged to Singapore and renamed Tiny Daisy.
Sources indicated that the vessel is currently deployed under a charter with a leading global oil major. The scrubber-fitted VLGC continues to be technically managed by Synergy Marine Group, one of the world’s largest ship management companies.
The acquisition comes at a time when the VLGC freight market is experiencing exceptional strength. Spot charter rates have climbed to around US$150,000 per day for voyages outside the Arabian Gulf and up to US$300,000 per day for vessels willing to load cargoes within the Arabian Gulf, reflecting continued disruptions to shipping through the Strait of Hormuz amid the prolonged conflict involving Iran.
The latest acquisition further strengthens J M Baxi Group’s growing presence in the energy shipping segment. Earlier this year, the company joined hands with Japan’s Kawasaki Kisen Kaisha, Ltd. (K LINE) and GAIL (India) Ltd to jointly own a 174,000-cubic metre Liquefied Natural Gas (LNG) carrier currently under construction at Samsung Heavy Industries in South Korea.
Scheduled for delivery in 2027, the LNG carrier will be deployed under a long-term time charter with GAIL, reinforcing J M Baxi Group’s strategic expansion into the transportation of clean energy commodities.