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Al Seer Marine, headquartered in Abu Dhabi, is entering into partnership with B International Shipping & Logistics, an affiliate of energy trader BGN, to launch a joint venture called ASBI Shipping FZCO. This new company will focus on owning and operating mid-sized liquefied petroleum gas (LPG) and product tankers, targeting niche trade lanes and regional markets.
ASBI Shipping has already acquired two 22,000 m3 semi-refrigerated LPG tankers, Alkaid and Alcor, which are backed by a 10-year charter with BGN INT DMCC, a subsidiary of BGN, a company which trades over 50 million tonnes of commodities annually. The deal is said to guarantee the joint venture around AED 660 million (US$180 million) in revenue through to 2035, ensuring a stable income steam for the venture.
The acquisition of these vessels reflects rising demand for smaller, more flexible LPG vessels that can efficiently serve regional hubs and infrastructure-constrained ports. ASBI Shipping has been formed to target those opportunities. Mid-size vessels like Alkaid and Alcor are considered critical for servicing emerging hubs in Africa, South Asia, and Southeast Asia, where it is estimated that 30% of LPG shipments now rely on carriers smaller than 30,000m3 size. Featuring semi-refrigerated systems, and built to meet high standards of safety, both ships are considered well suited to transport propane, butane, ammonia and other petrochemical cargoes.
To support the acquisition of these two vessels, Abu Dhabi Commercial Bank (ADCB) provided AED210 million ($57.2 million) in senior secured term financing, structured with a seven-year tenor. The facility is secured against the vessels and their cashflows.
ASBI Shipping has indicated plans to further expand its mid-size LPG and chemical tanker fleet, citing strong demand from emerging markets for agile, regionally optimised shipping solutions.
Also Read: Two More Tankers Delivered To Al Seer Marine
