Home CSN news Pelagic Partners teams up with B-Gas for LPG carriers

Pelagic Partners teams up with B-Gas for LPG carriers

Atef Abou Merhi - founding member of Pelagic Partners

H.M. Pelagic Partners announces the acquisition of two LPG carriers in a joint venture with Danish gas shipping specialist company B-Gas A/S.

While B-Gas Mate was delivered on June 15, B-Gas Monarch joined on June 21, increasing the number of vessels in the “Pelagic Fund 1” to five. The newly acquired ships are semi-ref LPG carriers built in 2006 and 2007, offering capacities of 3,300 cbm each.

“From an asset value perspective, the sub-5,000 cbm segment is considered rather a niche market, with new buildings not being justified by current prices. Hence, we believe that acquiring these vessels in partnership with one of the leading players in Europe will give us a strong strategical position. This also gives us the possibility to benefit from the upside, which we anticipate will come when for example covid restrictions continue to ease”, says Atef Abou Merhi, one of the Founding Members of Pelagic Partners.

“What we look for as a fund are projects that offer a healthy entry point. We intend to diversify the fleet as much as possible and invest into segments that we have good expertise in, for example when it comes to access to cargo, long-term customer relationships and also technical management. This ensures that our investors benefit from the whole supply chain of the parties that back Pelagic Partners.”

The recent acquisition raises the fund’s total fair market value to 45 million USD. Nonetheless, “Pelagic Fund 1” is still seeking for further investments to be executed during Q3 and to add to the existing portfolio: Including the newly acquired ships, the fund currently comprises three gas carriers, a handysize bulker and a car carrier (PCTC) with a capacity of 4,500 RT units.

A second fund is already in preparation and will take up operations by the end of 2021.