Dorian LPG will invest approximately US$345 million in three gas carriers 90,000 m³ Panamax vessels that will combine dual propulsion, shaft power generation, and hydrodynamic efficiency solutions.
Dorian LPG has signed a contract with South Korean shipyard Hanwha Ocean for approximately US$345 million to build three 90,000 m³ Panamax VLGCs, equipped with engines capable of operating on LPG and conventional low-sulfur fuels. Deliveries are scheduled for June, September, and December 2030.
The order expands a fleet renewal strategy based on vessels capable of combining operational flexibility and lower energy consumption. Dorian already has six dual-fuel ECO VLGCs within a fleet of 25 vessels, according to the operational update published by the company.
A VLGC that converts fuel into flexibility
The most relevant feature of the new vessels is their dual-fuel engine, capable of using LPG or conventional low-sulfur fuel. For an LPG carrier, this architecture introduces a unique characteristic: the same molecule that constitutes the commercial cargo can also be used as propulsion fuel.
The system allows operations to be adapted to fuel availability and price conditions, preventing the vessel from depending exclusively on a single energy alternative. It is not just about substituting one fuel for another, but about incorporating energy flexibility directly into the propulsion system.
The three VLGCs will also incorporate shaft generators, capable of producing electricity during navigation by harnessing the mechanical energy available in the propulsion system. In this way, power generation is integrated with the shaft line instead of depending exclusively on conventional auxiliary units.
Engine, propeller, and hull form a single system
Dorian has also specified modifications in the hydrodynamic and propulsive architecture. The hull design and main engines will allow for the use of larger diameter propellers, complemented by energy-saving devices installed around them.
The technical importance lies in the fact that efficiency is not sought in a single component. Engine, shaft, propeller, and hull must work together to transform the chemical energy of the fuel into thrust with the lowest possible losses.
A larger diameter propeller can operate with a propulsive load distributed over a larger surface area, while the devices installed around it seek to recover or better utilize the energy from the flow leaving the propeller. The intended result is a reduction in the energy required to produce the same vessel displacement.
This Dorian LPG philosophy turns the VLGC into an integrated electromechanical system: the engine generates mechanical power, the shaft transmits it and can also produce electricity, while the propeller transforms that power into thrust.
Panamax keeps trade routes open
Energy efficiency is not the only variable considered by Dorian. The Panamax dimensions will allow the new vessels to use the old locks of the Panama Canal, providing charterers with an additional alternative for certain trade routes.
The decision has an important logistical interpretation. In energy transport, a vessel is not valued solely by its cargo capacity or specific consumption. It also matters where it can navigate and which trade corridors it can use.
Dorian is, therefore, combining three variables in the design: transport capacity, energy efficiency, and route access. The Panamax architecture prevents the pursuit of larger dimensions from ultimately reducing the commercial flexibility of the asset.
Dorian LPG: A renewal backed by engineering and capital
The construction operation is accompanied by a new financial structure. On September 2, Dorian closed a seven-year US$368.4 million credit facility intended to refinance several existing obligations.
The agreement combines a US$213.4 million term loan and a revolving line of approximately US$155.1 million, in addition to a US$200 million accordion option to support future growth.
The financing consolidates four previous structures and is linked to a margin of 140 basis points over SOFR. The company indicated that the operation seeks to reduce daily interest and amortization costs and, simultaneously, provide financial capacity for fleet renewal and expansion.
SOURCE: https://www.offshore-technology.com
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