Owner and operator of LPG carriers Dorian LPG is on track to exceed 13 million metric tons of LPG exports this year, which is roughly a 50% increase over 2013, the company said in its latest quarter results.
The growth, supported by export terminal expansions in the US Gulf, has continued to drive high global fleet utilization and strong spot rates for VLGCs, Dorian said, adding, however; that there can be no guarantee that rates will remain at these levels.
As explained by the company, the recent decline in oil prices has not had any noticeable effect on demand for LPG shipping.
“Based on the significant investments that have already been committed in export capacity in the Gulf, we have no expectations for any change in US export growth. We further believe that the fundamentals that have propelled recent growth in global LPG demand remain largely unchanged as its attractive price levels and favorable environmental characteristics make it a preferred energy source for many sectors of the economy,” the company added.
John Hadjipateras, Chairman, President and Chief Executive Officer, commented, “We made progress in Q2 2015, as we continued to build out our fleet with the delivery of the Corsair in late September. We currently own and manage a modern fleet of 5 VLGCs and one pressurized LPG carrier.”
“With the delivery of the Corsair, we now have newbuilding contracts for the construction of 17 new fuel-efficient ECO-design VLGCs with scheduled deliveries between January 2015 and January 2016. As the U.S. continues to play a significant role in the LPG industry, we believe we are well positioned to take advantage of this future opportunity,” he added.