Al Seer Marine unveils orders for two additional MR tankers, VLGC

Al Seer Marine, a unit of Abu Dhabi-based International Holding Company, confirmed an order for two additional MR tankers at Korea’s shipbuilder K Shipbuilding.

The order was disclosed in a stock exchange filing, a month after K Shipbuilding announced the deal without disclosing the name of the shipowner behind the contract.

Al Seer Marine is paying AED 156 million ($42 million) per vessel. According to Clarksons, the two vessels are slated for delivery in the fourth quarter of 2024.

The order expands on the four IMO II/III MR tankers the company booked at the yard back in November 2022 as the UAE shipowner presses ahead with an ambitious fleet growth strategy. The quartet is worth AED 643 million ($175 million), and the ships are expected to complete the delivery by the end of 2024.

The ships would be LNG-ready and would be designed to adapt to burn new fuels such as ammonia and methanol, the shipowner said at the time.

The UAE-based company also announced an order for an 86,700 cbm very large gas carrier (VLGC), its thirteenth acquisition in the past year. The LPG/NH3 carrier will be built by Japanese Kawasaki Heavy Industries under a contract worth AED 331 million.

The vessel is equipped with separate cargo tanks designed to carry LPG and NH3 at the same time. It will be able to run on low-sulfur fuel oil and LPG as fuel.

Kawasaki plans to complete the construction of the vessels at its Sakaide Works in 2025.

This is the first LPG/NH3 carrier for BGN INT DMCC. However, it is the second contract for an LPG/NH3 carrier Kawasaki won this year and the 11th LPG/NH3 carrier to be constructed by Kawasaki.

Al Seer Marine said that this would be the 15th gas carrier for the company’s gas fleet, valued AED 2.75 billion.

The company has acquired a total of five gas carriers and is expected to secure two more by the first quarter of 2023.

BGN and Al Seer Marine are working together to supply the growing global demand for cleaner fuel-burning sources through their $170 million joint venture, ABGC DMCC. The JV is used for purchasing vessels used for transporting LPG around the globe.

“We believe LPG will be a key component of the global energy transition for years to come, and we are excited to work with Al Seer Marine on continuing the disciplined capital investment in our LPG fleet,” said Emin Imanov, CEO of BGN, earlier this month.

ABGC DMCC recently purchased three VLGCs powered by LPG fuel for ABGC DMCC: two 88,000 m3 carriers from Hyundai Samho Heavy Industries and one 86,700 m3 liquefied petroleum gas (LPG) and liquefied ammonia gas (NH3) carrier from KHI. The new carriers are due for delivery in the last quarter of 2025 and the first quarter of 2026.

“We are in a prime position to lead in the VLGC fleet space, where we will lean on our experience and technical strengths. This partnership will bring together operational, regional, and financial expertise to manage the initial portfolio of VLGCs we have just acquired, as well as the growth potential in the marketplace,” said Guy Neivens, CEO of Al Seer Marine.

The partners said the overall objective of ABGC DMCC is to provide cost-effective, scalable infrastructure solutions to facilitate the growing interest in LPG transport and storage where ship transport is the primary or earliest available export option.