New joint venture focused on mid-sized LPG tankers comes to market

Abu Dhabi-based Al Seer Marine, a subsidiary of International Holding Company (IHC), and B International Shipping & Logistics, an affiliate of energy trader BGN, have launched a new joint venture (JV) that will own and operate mid-sized LPG and product tankers.

As disclosed, the new JV was named ASBI Shipping FZCO, and it acquired two 22,000 cubic meter (cbm) semi-refrigerated LPG tankers, Alkaid and Alcor.

The vessels will go on a 10-year charter with BGN INT DMCC, a subsidiary of BGN under the deal that guarantees $180 million in revenue through 2035, Al Seer Marine said.

Abu Dhabi Commercial Bank (ADCB) provided $57.2 million in senior secured term financing for the purchase of these two vessels.

Al Seer Marine sees the mid-size vessels like Alkaid and Alcor as “critical for servicing emerging hubs in Africa, South Asia, and Southeast Asia, where 30% of LPG shipments now rely on sub-30,000 cbm carriers”, adding that the ships are well suited to transport propane, butane, ammonia, and other petrochemical cargoes thanks to their semi-refrigerated systems and high-standard safety features.

ASBI Shipping also plans to expand its fleet to meet the growing demand for flexible mid-size carriers in these markets.

Guy Neivens, CEO of Al Seer Marine, commented: “The global energy landscape is evolving rapidly, reshaping how countries manage their supply chains. Ensuring diversified and resilient access to critical commodities has become a strategic priority. This transformation is driving increased demand for smaller, more flexible LPG vessels that can efficiently serve regional hubs and infrastructure-constrained ports.

“To address this opportunity, we established ASBI Shipping FZCO as a joint venture with B International Shipping & Logistics. This reflects our strategy to pursue platform-based growth — enabling us to scale efficiently, extend our reach into niche segments, and partner with financial and operational stakeholders to respond more effectively to shifting market conditions.”

Rüya Bayegan, BGN Group’s CEO, said: “Our charter with ASBI aligns with BGN’s focus on securing transition fuel supply chains. Smaller vessels are indispensable for ports lacking VLGC infrastructure, and we anticipate further collaborations.”

In 2024, BGN and Al Seer Marine collaborated to secure 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.

The 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.

In the meantime, Al Seer Marine is working on the expansion of its fleet and recently took delivery of alternative fuel-ready Tabit and Rigel, the final two units of six medium-range (MR) tankers booked at South Korea’s K Shipbuilding (KSB).