Al Seer Marine Supplies & Equipment Company P.J.S.C. (ADX: ASM), a global maritime leader and subsidiary of International Holding Company (ADX: IHC), has partnered with B International Shipping & Logistics, an affiliate of top energy trader BGN, to launch ‘ASBI Shipping FZCO’. This new joint venture will own and operate mid-size liquefied petroleum gas (LPG) and product tankers, strengthening regional and global LPG logistics.
Fleet Acquisition
ASBI Shipping acquired two 22,000 cbm semi-refrigerated LPG tankers (Alkaid and Alcor) from Al Seer Marine. The vessels are backed by a 10-year charter with BGN INT DMCC, a subsidiary of BGN that trades 50+ million metric tonnes of commodities annually. The deal guarantees AED 660 million (USD 180 million) in revenue through 2035.
Financing Structure
Abu Dhabi Commercial Bank (ADCB) provided AED 210 million (USD 57.2 million) in senior secured term financing with a seven-year tenor. The facility is secured against the vessels and their cashflows, reflecting confidence in ASBI’s commercial viability.
Market Opportunity
The global LPG tanker market is projected to grow at a 5.26% CAGR, reaching USD 411.76 million by 2033 (Global Growth Insights). Mid-size vessels like Alkaid and Alcor are critical for servicing emerging hubs in Africa, South Asia, and Southeast Asia, where 30% of LPG shipments now rely on sub-30,000 cbm carriers.
Guy Neivens, CEO of Al Seer Marine, commented: “The global energy landscape is evolving rapidly, reshaping how countries manage their supply chains. Ensuring diversified and resilient access to critical commodities has become a strategic priority.”
He added that the transformation is driving increased demand for smaller, more flexible LPG vessels that can efficiently serve regional hubs and infrastructure-constrained ports.
“To address this opportunity, we established ASBI Shipping. This reflects our strategy to pursue platform-based growth — enabling us to scale efficiently, extend our reach into niche segments, and partner with financial and operational stakeholders to respond more effectively to shifting market conditions,” the CEO said.
Al Seer Marine has built a strong track record of collaboration with financial institutions to fund its fleet expansion strategy locally and globally. The AED 210 million (USD 57.2 million) financing provided by ADCB for this transaction marks the beginning of a long-term partnership with one of the UAE’s most respected banks.
Rüya Bayegan, BGN group CEO said, “Our charter with ASBI aligns with BGN’s focus on securing transition fuel supply chains. Smaller vessels are indispensable for ports lacking VLGC infrastructure, and we anticipate further collaborations.”
Built by Hyundai Mipo Dockyard in 2013 and acquired by Al Seer Marine in 2022 for AED 246 million (USD 67 million), the two vessels provide an ideal mix of cargo capacity, fuel flexibility, and operating efficiency. With a length overall of 160 metres, a beam of 25.6 metres, and mid-size draught, they are optimised for deployment in trade corridors where Very Large Gas Carriers (VLGCs) are restricted. Featuring twin-screw propulsion, semi-refrigerated systems, and high-standard safety features, Alkaid and Alcor are well suited to transport propane, butane, ammonia, and other petrochemical cargoes with minimal downtime.
Ozan Turgut, B International Shipping & Logistics Director, said: “With 38+ vessels under management, we bring decades of gas carrier expertise to this JV. These vessels are tailored for fragmented markets, where demand for flexible tonnage has surged 10% year-on-year in Southeast Asia alone. We see this as a unique market window and intend to grow ASBI’s fleet to meet regional demand and become a global leader in this specialised segment.”
Medium Gas Carriers (MGCs) and Small Gas Carriers (SGCs) are used mainly for regional trade. SGCs, typically under 10,000 cbm, serve domestic and smaller markets, with adoption rising in Africa as local energy demand increases and cost-effective, flexible transport becomes a priority. ASBI Shipping plans to expand its fleet to meet growing demand in Africa, South Asia, and Southeast Asia, where flexible mid-size carriers are increasingly vital.
By partnering with technical operators and financial institutions, Al Seer Marine continues to implement a capital-efficient expansion model that balances growth, income stability, and long-term asset value. The ASBI Shipping joint venture represents the first implementation of Al Seer Marine’s new strategy to develop scalable platforms focused on capturing market share in high-demand maritime segments.
Source: B International Shipping & Logistics