The board of Odfjell SE decided in 2012 to set up a new business unit specializing in the transportation of chemical gases. Odfjell GAS embarked on a thrilling journey, establishing a new unit. With ambitions soaring high, Odfjell aimed to lead the market for handy-sized semi-ref LPG carriers, capitalizing on Odfjell's strong brand and global network.
Two vessels were bought from Indonesian Owners for delivery in August and September 2012. A nimble team, focusing on marketing and operations, was set up, supported by ship management from Odfjell SE.
After a thorough market analysis in 2012/13, Odfjell Gas signed newbuilding contracts at Sinopacific Offshore & Engineering Co. Ltd. for four 17.000 cbm LPG/ethylene carriers for delivery in 2015 and 2016. We also secured options for an additional four vessels of 22.000 cbm to be delivered in 2016 and 2017. Also, in 2014, a two-year time charter for the “Berlian Equator”, a NYK owned LPG/NH3 carrier, was concluded.
After signing newbuilding contracts and securing options, challenges emerged. In the autumn of 2014, we established a joint venture and sold 50% of Odfjell Gas to Gas Maritime Partners (GMT), a joint venture of Oak Hill and Celsius Shipping in Copenhagen.
At this time, the two smaller vessels, Bow Gallant and Bow Guardian, entered the Lauritzen Kosan (LK) pool, and commercial/operational responsibility was partly moved to Copenhagen.
In 2015, we got indications from the yard that the construction of our newbuildings was significantly delayed. As it turned out, the delay was of such a degree that we decided to cancel the contracts in December 2016. All eight contracts were canceled as soon as we were in a position to do so. We later learned that five vessels were finally constructed: The contracts were sold to a Chinese operator and the vessels are trading today.
We were left with the two smaller vessels of 9000 cbm which continued in the LK pool, and Odfjell’s strategy changed towards an exit from the LPG market.
LK decided to dissolve the pool in March 2020, and we received six months termination notice. Thereafter, an opportunity developed to place both 9000 cbm vessels on time charter to Braskem via Odfjell’s subsidiary Flumar. Contracts for both vessels were concluded early autumn 2020.
In the first half 2021, Odfjell SE bought back the shares in Odfjell Gas AS from their partners (GMT). Later in the year, Odfjell Gas bid farewell, selling to BW EPIC Kosan, securing a decent return.
Part of the payment for the ships was in shares. These were sold at the end of last year and finally settled just before Christmas, representing the "closing of the books" for Odfjell Gas AS, 11 years after the commissioning of the company.
One of the vessels is still on time charter to Flumar from BW EPIC Kosan, sailing under a contract between Flumar and Braskem.
