Maritime companies BW LPG Limited and BW Pacific have found work for seven new vessels as the companies signed time charter deals with Japanese shipping firm Mitsui & Co. Ltd.
Under the contracts, signed on April 22, three very large gas carriers (VLGCs) and four medium range (MR) product tankers will be deployed on time charters with marine transportation services firm Nissen Kaiun KK.
The vessels are currently being built at Japan United Marine Corporation (JMU) shipyard.
According to BW Group, these long-term time charter-in (TC) deals would enable BW LPG and BW Pacific to grow their fleets with no up-front capital while maintaining the flexibility to acquire these vessels in the future at an agreed price.
“We are pleased to have concluded these TC-in deals with our Japanese partners and when delivered these vessels will be a welcome addition to our fleet,” says Peter Schulz, BW Pacific’s Chief Financial Officer.
Just last week, BW LPG said that it signed a debt facility agreement for the amount of USD 221 million in order to finance four of its very large gas carrier (VLGC) newbuildings.
The financing has been raised from ING Bank, KFW IPEX-Bank GmbH, Oversea-Chinese Banking Corporation Limited (OCBC) and Standard Chartered Bank, as mandated lead arrangers, where ING Bank also acted as coordinator and facility agent.