Newsfront – Greek Shipping Intelligence Vol.15 / No.30
The John Hadjipateras-led Dorian LPG has opened the door to both ends of the expanding gas market, gaining entrance to the Chinese LPG gas market and positioning itself to become a leading player in the VLGC market. The ambitious NYSE-listed Dorian has agreed with China’s HNA Logistics Group, to jointly explore opportunities in the LPG market, and with Mitsui OSK Lines, through Japanese company’s division, Phoenix Tankers, to establish a VLGC pool.
Hadjipateras, chairman, president and ceo of Dorian said: “We are very pleased to form a strategic relationship with HNA Logistics. Their unique presence in the Chinese market creates opportunities to develop energy related transportation, finance, infrastructure and distribution.” He said “the aim is to forge relationships with Chinese LPG ship charterers and LPG end users.”
HNA’s director and vp, Ximen Chen, said the MoU “presents a significant opportunity for our company to collaborate with a leader in the LPG industry”. He continued: “We will jointly engage in the development of green energy logistics which includes LPG vessel investment, gas supply chain solutions and infrastructure in the Chinese market, with the ultimate goal of together building an LPG distribution business in China to take advantage of the significant opportunities for growth in the global LPG industry.”
As this partnership cemented, it was revealed Dorian had joined forces with MOL to establish a VLGC pool comprising Phoenix’s 11 VLGCs and Dorian’s trading fleet of four VLGCs under combined management from Singapore and London. Dorian also has 18 ships on order. Of this development, Hadjipateras, said: “We expect our jointly operated pool, comprising the world’s number one eco VLGC fleet as well as other modern vessels, will be very well positioned to provide efficient service to customers in the eastern and western hemispheres.”
Analysts believe these alliances will finally put an end to suggestions the Greek-led company and Norway’s Avance Gas will merge. Indeed, analysts say Dorian has underlined its disinterest in a merger with Avance, as it seeks t/cs for its newbuildings of between three and five years. Hadjipateras said: “Growth of the LPG industry represents a significant opportunity for our company, specifically the US export market which has grown rapidly since 2009 and continues to expand at a steady pace.”
Meanwhile, Dorian, which disclosed a profit of $2.83m for the 2014 second quarter compared to a gain of $4.41m a year ago, has taken delivery of the 84,000cumtr Dorian Comet from Hyundai HI. It has been fixed to Shell for five years. The delivery coincided with the naming of sister ship Dorian Corsair. In all, Dorian boasts a fleet of 23 vessels including the 18 eco VLGCs under construction.
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