Varun Shipping Company is set to acquire a liquified petroleum gas vessel with 35,639 cubic metre capacity for $40 million through its wholly owned subsidiary in Singapore, VSC International Pte Ltd. The carrier will join the company's fleet this week.
"With this acquisition, Varun Shipping will become the second largest owner of the midsize fully refrigerated LPG carriers fleet in the world, and own about 19 per cent of the fleet in this category," a Varun Shipping official told Business Standard.
At present, Varun Shipping retains leadership with 77 per cent of the total LPG tonnage operating in India. The company has deployed adequate tonnage to meet country's LPG requirement and is ready to bring in additional vessels to meet rising demand, sources said.
"The LPG carrier, which is being acquired from AP Moller and will be rechristened 'Maharshi Bhavatreya', will take the company's LPG career fleet strength to 11," the source said, adding the freight rates for the LPG sector have further firmed up and are likely to still higher as winter sets in.
"LPG freight rates are continuing to remain firm because of shortage of LPG carriers in the world market," the source said.
The company currently owns and operates 21 vessels in five sectors including LPG, crude tanker, oil & petroleum products, easy chemicals, dry bulk and offshore.
According to industry analysts, the volatility of freight rates would not have a big impact on the mid-size LPG fleet, as compared to very large gas carriers as the company has vessels with relatively lower volatility such as medium range tankers, Aframax tankers, Handymax Bulk carriers and offshore supply vessels, they added.
