Abu Dhabi: Al Seer Marine PJSC, the leading marine company in the Middle East region that is engaged across multiple marine sectors and a subsidiary of International Holding Company (IHC), has formed a joint venture with BGN International, one of the world’s leading energy, trading, storage, and transportation companies, to acquire a portfolio of Very Large Gas Carriers (VLGCs) for transport of Liquefied Petroleum Gas (LPG).  

In addition, the joint venture has agreed to award Hyundai Heavy Industries (HHI) in Korea with an order to build two new VLGCs, both sized at 86 000 cubic meters capacity. The new-build VLGCs are due for delivery in the first and second quarters of 2023 respectively.  The propulsion machinery of each ship will be LPG fueled, making them environmentally friendly with less emissions.

Reahd Al-Kindi, Al Seer Marine’s Chairman, said: “Continued global demand for cleaner fuel-burning sources such as LPG in emerging markets will require greater infrastructure including VLGCs. We have identified this as an area of tremendous long-term growth and with the backing of IHC, agreed a partnership with BGN, one of the leading LPG and energy suppliers in the world. 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.”

The partnership marks a shift in strategy for Al Seer Marine, which previously engaged in multiple marine sectors such as high-tech boatbuilding, unmanned systems development, and manufacturing. The company also has a training institute, Al Seer Marine Training Institute (ASMTI), for product training, maintenance, and support services as well as supply logistics, 24x7 yacht management and project management.

Ruya Bayegan, CEO of BGN International, said: “With continued growth for LPG demand, expanding BGN’s global infrastructure will be critical. This joint venture with IHC and Al Seer Marine represents another strategic partnership for BGN and an opportunity for scalable growth in the foreseeable future.”

Al Seer has identified an area of growth when it comes to exporting LPG (liquified petroleum gas) and LNG (liquified natural gas) by means of VLGCs. These vessels are generally 250 to 300 metres long and have four to six storage tanks on board, capable of loading anywhere between 100,000 to 200,000 cubic meters of gas.

“We have ordered two vessels from Hyundai Heavy Industries, the largest ship builder in the world, and depending on how we see demand, may well purchase further vessels or order more.” Al-Kindi added.

There is a limited supply of vessels, with only 312 VLGCs in the world as of the start of the year, and 18 of those operating as storage units.

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About Al Seer:

Al Seer Marine PJSC, a supplies and equipment company, is listed on the Abu Dhabi Securities Exchange Second Market under the ticker ASM and is a subsidiary of International Holding Company. The company was founded in 2003 and is headquartered in Abu Dhabi, UAE.  Al Seer is a leading marine company in the Middle East region, with a portfolio of services including the management and construction of vessels. Al Seer Marine employs more than 1,200 people from over 50 nationalities onboard and ashore.

About BGN International:

BGN International is a global energy company which deals in trading, storage and transportation of petroleum, petrochemical products, and other commodities. BGN is one of the leading LPG suppliers globally today operating hubs in Dubai, Geneva, Singapore, and Houston.

International Holding Company:

IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to ‘Abu Dhabi’s Vision 2030’, the ADX listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates.

IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations.  Comprising more than 30 entities, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.

With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximizes cost efficiencies across all verticals – it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad. As the world changes, and new opportunities arise, IHC remains focused on resilience, innovation and redefining the marketplace for itself, its clients, and its partners.

Contact details:
Ahmad Ibrahim
Corporate Communication and Media Manager
Ahmad.ibrahim@ihcuae.com 

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