BGN: $370M secured for three new VLGCs

Swiss energy company BGN and Al Seer Marine, the UAE-based player across multiple marine sectors, have secured funding from several banks located in the Gulf region to support the construction of three very large gas carriers (VLGCs) in South Korea and Japan.

Abu Dhabi Islamic Bank (ADIB) led the closure in March 2024 of a $235 million syndicated transaction, bringing the total financing for BGN and Al Seer Marine’s vessel-building program to $370 million.

As informed, the transaction was supported by other lenders, including Abu Dhabi Commercial Bank (ADCB), National Bank of Fujairah (NBF), Commercial Bank of Dubai (CBD), and The Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution and the private sector arm of Islamic Development Bank (IsDB) Group.

BGN said it has been committed to developing and maintaining a ‘modern’ fleet to support its global physical trading platform. The new, efficient ships are expected to provide ‘much-needed’ capacity for BGN’s physical energy traders who continue to supply the world with transitional fuels such as liquefied petroleum gas (LPG), ammonia and other commodities.

According to BGN, the new vessels to be delivered in 2025-26 will be equipped with advanced technology and superior emissions performance features, in line with BGN’s North Gas and Lucky Gas VLGCs that were launched in 2023.

Earlier this year, BGN emerged as the owner behind the order for the construction of two VLGCs at HD Hyundai Heavy Industries in South Korea.

The 88,000 cbm vessels, planned for delivery by 2027, will support the company’s LPG trading platform and will be able to carry ammonia, a zero-emission marine fuel that currently enjoys growing momentum.