Al Seer Marine PJSC, a subsidiary of Abu Dhabi's International Holding Co., has formed a joint venture worth 624 million dirhams ($170 million) with Dubai-based energy company BGN International, to acquire a portfolio Very Large Gas Carriers (VLGCs) for transporting liquefied petroleum gas.
In addition, the joint venture will award South Korea’s Hyundai Heavy Industries (HHI) an order to build two new VLGCs to be delivered in the first and second quarters of 2023 respectively, Al Seer said in a statement on Wednesday.
Reahd Al-Kindi, Al Seer Marine’s chairman, said the continued global demand for cleaner fuel-burning sources such as LPG in emerging markets will require greater infrastructure including VLGCs.
“The partnership will bring together operational, regional, and financial expertise to manage the initial portfolio of VLGCs we have just acquired as well as the growth potential in the marketplace,” he said.
The partnership marks a shift in strategy for Al Seer Marine, which previously engaged in boatbuilding, unmanned systems development, and manufacturing. It has total assets of 3.98 billion dirhams as at the end of June 2021, and 1 billion dirhams in paid-in capital. The company was recently listed on the Abu Dhabi Securities Exchange.
(Writing by Brinda Darasha; editing by Seban Scaria)
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