Dorian LPG Ltd. (NYSE: LPG) has announced a newbuilding contract and a significant refinancing of its debt facilities. On September 4, 2026, the company disclosed an agreement with Hanwha Ocean to construct three very large gas carriers (VLGCs).
The new vessels are dual-fuel Panamax VLGCs with a capacity of 90,000 cubic meters. They are scheduled for delivery in June, September, and December of 2030. The total contract price for the three ships is approximately $345 million. The newbuildings are designed with dual-fuel engines capable of operating on LPG and conventional low-sulphur fuels, along with a Shaft Generator system for onboard power generation.
In addition to the newbuilding order, the company entered into a new seven-year credit facility on September 2, 2026. The facility has a total value of $368.4 million. It is intended to refinance existing indebtedness under the 2023 A&R Debt Facility, Cougar and Cresques Japanese Financings, and the Commander tranche of the BALCAP Facility.
The new credit facility is comprised of a $213.4 million term loan and a $155.1 million revolving credit facility. It carries a margin of 140 basis points over SOFR with an age-adjusted profile of 22 years. At the close of the facility, $193.8 million was drawn to refinance existing debt, with an additional $16 million drawn on the revolving portion to refinance the vessel Clermont prior to her delivery to new owners in October.
The syndicate for the new facility is led by Nordea Bank AbP New York Branch, which serves as agent, coordinator, and security agent. Other participating banks include Skandinaviska Enskilda Banken AB (Publ), Crédit Agricole Corporate & Investment Bank, BNP Paribas, Danish Ship Finance A/S, DNB Carnegie, Inc., ING Capital LLC, and Oversea-Chinese Banking Corporation, London Branch. The facility includes a $200 million accordion feature to support future growth.
