Al Seer Marine: LPG Vessel Market Expansion via JV
Al seer Marine Expands LPG Shipping Ventures with New Joint Venture
Updated June 02, 2025
Al Seer Marine, an IHC subsidiary, has partnered with B International Shipping & Logistics, an affiliate of energy trader BGN, to launch ASBI shipping FZCO. This joint venture aims to own and operate mid-sized liquefied petroleum gas (LPG) and product tankers, enhancing its LPG shipping capabilities.
The new venture has already acquired two 22,000cbm semi-refrigerated LPG tankers, the Alkaid and Alcor. These acquisitions are supported by a 10-year charter with BGN INT DMCC, a BGN subsidiary that trades over 50 million metric tons of commodities annually. The deal guarantees revenue of AED660 million (US$180 million) through 2035.
Abu Dhabi Commercial Bank (ADCB) provided AED210 million (US$57.2 million) in senior secured term financing for the vessel purchase, with a seven-year tenor. The financing is secured against the vessels and their cash flows, demonstrating confidence in ASBI’s commercial viability.
Guy Neivens,CEO of Al Seer Marine,said the global energy landscape is rapidly evolving,reshaping supply chains. He added that ensuring diversified access to critical commodities has become a strategic priority, driving increased demand for smaller, more flexible LPG vessels.
“To address this opportunity, we established ASBI Shipping FZCO as a joint venture with B international Shipping & Logistics.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,” Neivens said.
Mid-size vessels like Alkaid and Alcor are essential for servicing emerging hubs in Africa, South Asia, and Southeast Asia. These regions rely on sub-30,000cbm carriers for 30% of LPG shipments. The vessels feature semi-refrigerated systems and high-standard safety features, making them suitable for transporting propane, butane, ammonia, and other petrochemical cargoes.
Rüya Bayegan, CEO of BGN Group, said their charter with ASBI aligns with BGN’s focus on securing transition fuel supply chains. bayegan noted that smaller vessels are indispensable for ports lacking VLGC infrastructure, and she anticipates further collaborations.
ASBI Shipping plans to expand its fleet to meet the growing demand for flexible mid-size carriers. Ozan Turgut, B International Shipping & Logistics Director, said that with over 38 vessels under management, they bring decades of gas carrier expertise to this joint venture. turgut added that 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,” Turgut said.
What’s next
Al Seer Marine aims to continue implementing a capital-efficient expansion model by partnering with technical operators and financial institutions, balancing growth, income stability, and long-term asset value.