Trading firm BGN is in talks to add a second LNG carrier to its fleet, its shipping director Ozan Turgut told Argus.
BGN is "very much in close discussions" about the vessel, Turgut said on the sidelines of the Adipec conference in Abu Dhabi this week. The company has yet to decide whether to add the ship through a joint venture or another arrangement, BGN said.
BGN aims to have two LNG carriers by 2027. Its trading arm is due to take the first, the 174,000m³ Amore Mio I, on a 10-year time charter in early 2027 through a joint venture with Greece's Capital Clean Energy Carriers.
"We are taking baby steps at the moment, but our goal is to expand like we did on LPG," Turgut said.
The LNG push is part of a wider expansion that will take BGN's fleet to 30 vessels by 2030, the company said. That will include 22 very large gas carriers (VLGCs), two handysize LPG carriers, one LNG carrier, three Suezmax crude tankers and two MR product tankers.
Turgut said owning ships gives BGN control over its freight costs.
"LPG is one of our core businesses, so we cannot rely on the market dynamics," he said. "We invested in these vessels to fix our costs and to have ships available at the right time."
BGN loads a large share of its LPG on the US Gulf coast, with much of it moving to Asia-Pacific through the Panama Canal. Turgut said canal transit slots have become easier to secure after being "quite expensive" and "really hard to get" a year ago.
Prepared for downturn
VLGC rates have risen since September as higher Mideast Gulf exports led to more ship-to-ship transfers, lengthening turnaround times and leaving fewer vessels available for new bookings.
The Houston-Chiba rate ended October at $315/t, near record highs. But Turgut said a potential decline would be "super normal" and that BGN was fully prepared for one.
"For us, it is an expected scenario that the shipping market can go down," he said.
BGN's charter book gives it room to adjust. The company has more than 40 vessels on time charters of three to 10 years and regularly fixes on the spot market, giving it a "balanced portfolio", Turgut said.
A reopening of the strait of Hormuz would not immediately affect BGN's investment plans, Turgut said.
"We have long-term strategies," he said. "But of course, we are going to be cautious."
