Dorian LPG Ltd. (LPG): PESTLE Analysis [Nov-2025 Updated]

You're looking at Dorian LPG and seeing strong VLGC spot rates-near $75,000 per day in late 2025-but you know that number is fragile. Geopolitical tension in the Red Sea, IMO's Carbon Intensity Indicator (CII) rules, and the shift to dual-fuel vessels are defintely creating a high-stakes environment. We need to map out these Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) forces to see where the real risks and opportunities lie for your investment or strategy.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Political factors

Geopolitical tension in the Middle East and Red Sea still forces longer, costlier voyages.

You can't talk about global shipping in 2025 without starting with the Red Sea. The persistent geopolitical tension, primarily from Houthi attacks near the Bab al-Mandeb Strait, has fundamentally altered the VLGC (Very Large Gas Carrier) trade lanes. It's a clear operational risk that hits the bottom line immediately.

The majority of carriers, including those Dorian LPG Ltd. competes with, have been forced to reroute vessels around the Cape of Good Hope. This detour adds roughly 10-21 days to the voyage time between the US Gulf Coast and Asia, effectively tying up vessel capacity and reducing the number of round trips a ship can complete annually. This is a simple capacity crunch.

The financial impact is twofold: higher operating costs and increased insurance premiums. War risk insurance premiums have surged, and the longer route significantly increases fuel consumption. This pressure is reflected in Dorian LPG Ltd.'s own fiscal year 2025 results, which noted a Time Charter Equivalent (TCE) rate of $39,778 per available day, a substantial drop from the prior year's $62,129, partly due to this challenging geopolitical environment. Honestly, the Red Sea situation is defintely the single biggest near-term variable for freight rates.

US-China trade relations dictate key commodity flow and LPG export volumes.

The volatility in US-China trade relations remains a massive political factor, directly impacting the flow of US-origin Liquefied Petroleum Gas (LPG) and VLGC demand. The imposition of retaliatory tariffs, such as China's 125% duty on US LPG, has forced a significant rerouting of trade flows throughout 2025.

This trade friction creates a classic supply-side distortion. When the tariffs were fully in effect, China, a key consumer for US propane used in its Propane Dehydrogenation (PDH) sector, dramatically shifted its sourcing to the Middle East. For instance, China's LPG imports from the Middle East Gulf surged to 5.09 million metric tons in Q2 2025, up from 2.58 million metric tons in Q1 2025. This shortens the average VLGC voyage distance (tonne-mile demand) for Middle East-Asia routes, which is a negative for overall shipping demand.

However, a temporary tariff truce announced in August 2025 provided a brief reprieve. This policy change is expected to see US-origin LPG cargo flows recover, with China projected to import 859,700 mt in September 2025, briefly regaining its position as the top importer of US LPG. This back-and-forth policy environment creates whiplash for chartering decisions and rate stability.

Sanctions compliance remains a high-stakes operational risk for global shipping.

For a compliant, US-listed operator like Dorian LPG Ltd., sanctions compliance is a non-negotiable, high-stakes operational risk. The US Treasury's Office of Foreign Assets Control (OFAC) continues to aggressively target Iran's 'shadow fleet' of tankers and gas carriers that transport sanctioned oil and LPG, a campaign that has been highly active throughout 2025.

The US government has repeatedly designated vessels, including four LPG carriers in July 2025, that are involved in the covert transport of Iranian petroleum products. The risk isn't just for the sanctioned vessels; it's systemic. The use of deceptive shipping practices (DSPs), like falsified Automatic Identification System (AIS) signals and flag switching, has made it harder to ensure a vessel has not previously been involved in illicit trade. Experts estimate that the 'dark fleet' activity is growing, with false-flag vessels accounting for nearly 29% of this non-compliant fleet in Q4 2025.

This political enforcement creates a clear competitive advantage for Dorian LPG Ltd.'s modern, compliant fleet. As legitimate vessel supply shrinks-with approximately 14% of the global VLCC fleet estimated to be under direct or indirect sanctions as of early July 2025-shippers who demand strict compliance are left with fewer, higher-quality options, which should support premium rates for compliant operators.

Government policies in Asia (India, China) accelerate LPG import demand for residential use.

Long-term demand for LPG is heavily influenced by government policy in major Asian economies, particularly in India. India's commitment to clean cooking fuel, primarily through the Pradhan Mantri Ujjwala Yojana (PMUY) subsidy scheme, has created a massive, stable import market. As of March 1, 2025, India had a total of 329.4 million active domestic LPG consumers, with 103 million being beneficiaries of the PMUY scheme.

This state-driven push for residential LPG has made India a cornerstone of global LPG demand. The country's total LPG imports are forecast to increase to 19.8 million metric tons in 2025. This steady, non-cyclical demand for residential-grade LPG acts as a crucial stabilizing force against the volatility seen in the petrochemical sector's demand (like China's PDH plants).

The political decision to prioritize energy access directly translates into long-haul VLGC demand, which is good for Dorian LPG Ltd. India's diversification strategy, partly in response to the US-China trade war, has also led to an alliance with the US, boosting US LPG exports to India to 967,000 mt in Q2 2025. This is a strategic shift that favors the long-distance trade routes that VLGCs excel at.

Here's the quick math: more households using subsidized LPG means more consistent import volumes, regardless of global oil price swings.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Economic factors

VLGC spot rates are strong, averaging near $75,000 per day in late 2025, driven by tight vessel supply.

The core economic driver for Dorian LPG Ltd. is the Very Large Gas Carrier (VLGC) spot rate, and honestly, the market has been a bright spot. After a soft start to 2025, rates rebounded strongly. By July 2025, conventional VLGC spot rates were already around $66,000 per day, a significant jump from early-year lows. Our internal models and market forecasts anticipate this strength to continue, projecting an average of approximately $63,500 per day for the fourth quarter of 2025. That's a strong number, and it's being driven by a simple supply/demand imbalance.

The vessel supply side is tight because fleet growth is slowing dramatically. For 2025, the average VLGC fleet growth is poised to be less than 3%, a substantial slowdown from the 9-10% annual growth seen over the last two years. Plus, geopolitical disruptions, like the continued uncertainty on key global routes, are effectively taking vessels out of circulation for longer, further tightening the available supply and keeping those daily rates high.

The arbitrage spread between US natural gas and international LPG prices sustains high US export volumes.

The US-Asia arbitrage-the price difference between US-sourced natural gas liquids (NGLs) like propane and the international price of LPG-remains the engine for Dorian LPG Ltd.'s business. US LPG exports are the single biggest factor driving VLGC demand, and they are still growing. Year-to-date US exports in 2025 were up more than 5% compared to the same period in 2024. Specifically, US LPG exports are expected to jump 6% over the full fiscal year 2025.

This export growth is pushing US terminals to their limit, which is the main constraint right now. For example, US Gulf Coast propane exports in September 2025 jumped 9.6% to 1.893 million barrels per day (bpd). The good news is that new export capacity is coming online in the second half of 2025, which should unlock even more volume. Energy Transfer's Nederland terminal is planned to start exporting LPG in July 2025, and Targa's Galena Park expansion is expected in Q4 2025.

• US LPG exports projected to increase 6% in 2025.
• January 2025 US LPG exports were 2.3 MMb/d.
• New export capacity from Energy Transfer and Targa is expected in 2H25.

Global economic slowdown is a near-term risk, potentially reducing overall commodity trade volumes.

While the LPG market is strong, we can't ignore the macro backdrop. The risk of a global economic slowdown is defintely a near-term concern. The International Monetary Fund (IMF) projects global growth to slow from 3.3% in 2024 to 3.2% in 2025. More critically for a shipping company, the World Trade Organization (WTO) forecasts global merchandise trade volume to actually decline by 0.2% in 2025. This is a direct headwind for overall commodity shipping demand.

What this estimate hides is the risk from trade policy. The WTO warns that if trade tensions escalate, the decline in global merchandise trade could be as steep as 1.5%. Dorian LPG Ltd. is somewhat insulated by the strong, structural demand for US LPG, but a broad-based decline in global industrial production would eventually hit demand for all commodities, including the petrochemical feedstocks that LPG fuels.

Inflationary pressure increases operating expenses (OPEX), especially for crew wages and maintenance.

The rising cost of doing business is a clear headwind, even with strong charter rates. For the fiscal year ended March 31, 2025, Dorian LPG Ltd.'s vessel operating expenses (OPEX) were $11,143 per vessel per calendar day, up from $10,469 in the prior year. That's a 6.4% increase year-over-year.

Here's the quick math on where that money is going: excluding non-capitalizable drydock costs, the daily OPEX still increased by $271 to $10,383 for the fiscal year 2025. The main culprits are crew-related costs, spares, and stores. The specialized nature of VLGCs means the demand for qualified crew is high, which puts continuous inflationary pressure on wages. This is a cost we expect to keep rising, so managing it is a priority.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Social factors

Public and investor pressure pushes for cleaner energy, favoring LPG as a transition fuel over heavy fuel oil.

You are defintely seeing the social tide turn, and it's a massive tailwind for the Liquefied Petroleum Gas (LPG) shipping sector as a whole. Public and investor sentiment is pushing hard for cleaner energy, which positions LPG as a necessary transition fuel, especially when compared to heavy fuel oil (HFO) or coal.

Honesty, for billions of people, the choice isn't between LPG and solar, it's between LPG and far more harmful fuels like firewood. LPG burns significantly cleaner, emitting up to 50% less carbon dioxide than coal and 20% less than heating oil. This environmental benefit is a huge plus for Dorian LPG Ltd.'s brand and charterer appeal.

This social pressure translates directly into corporate strategy. Dorian LPG Ltd. has responded by making strategic investments in eco-friendly and dual-fuel vessels, which is what major charterers are now demanding. Global LPG consumption reflects this trend, projected to grow at a rate of 2.5% annually through 2025, a steady signal of its role as a bridge fuel.

Labor shortages for skilled maritime crew, particularly those trained on dual-fuel engines, increase wage costs.

The push for dual-fuel vessels-like the four dual-fuel ECO VLGCs in Dorian LPG Ltd.'s fleet-is smart for the environment, but it creates a real pinch on the labor side. Finding skilled maritime crew, especially engineers and officers competent in operating and maintaining these advanced dual-fuel engines, is getting tougher and more expensive. It's a simple supply and demand problem.

We're seeing upward pressure on wages across the board. For example, the average USD equivalent for bonuses paid in the tanker market surged by 44% in 2024 compared to 2023, reflecting the competition for talent. Plus, a third of companies are forecasting a further wage increase of between 2.1% and 3% for Junior Officers in 2025.

The International Labour Organization (ILO) also agreed in April 2025 to update the minimum monthly basic wage for an able seafarer from US$673 to US$690 starting January 1, 2026, marking a 2.5% increase. This is the baseline, so expect the specialized crew Dorian LPG Ltd. needs to command a significant premium over that. It's an unavoidable rise in Vessel Operating Expenses (OPEX).

Growing middle-class populations in Asia drive demand for cleaner cooking and heating fuels like LPG.

The demographic shift in Asia is a fundamental driver for Dorian LPG Ltd.'s business. As middle-class populations expand in countries like India, China, and Southeast Asia, millions are moving away from traditional, polluting fuels to cleaner options like LPG for cooking and heating. This is a massive, structural demand story.

The numbers are clear: Asia's demand is robust. China's propane imports alone more than doubled since 2018, reaching 29.6 million metric tons (mt) in 2024. The combined propane and butane intake for India, Pakistan, and Southeast Asia hit 40.5 million mt in 2024, which is a staggering 74% increase from 2018. This sustained demand keeps the Very Large Gas Carrier (VLGC) trade routes, particularly the long-haul US-to-Asia routes, highly active.

Here's the quick math on the residential and industrial split:

Shifting consumer habits towards sustainable supply chains influence charterer selection.

Charterers-the companies hiring Dorian LPG Ltd.'s vessels-are under pressure from their own customers and investors to prove their supply chains are sustainable. This social demand for transparency and lower emissions is directly influencing which ships get hired. It's no longer just about the lowest freight rate.

This is why Dorian LPG Ltd.'s investment in its fleet is so critical. The company operates twenty ECO VLGCs and, crucially, four dual-fuel ECO VLGCs. These vessels offer a tangible reduction in emissions, making them preferential for major energy companies and traders who need to meet their own Environmental, Social, and Governance (ESG) targets.

The market is seeing a clear preference for vessels that can demonstrate lower carbon intensity, often translating into higher charter rates or longer contract terms for ships with dual-fuel capabilities. This trend makes the company's fleet composition a competitive advantage, not just an operational one.

• Invest in crew training for dual-fuel engines immediately.
• Prioritize ECO and dual-fuel vessels in charter negotiations.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Technological factors

You're navigating a shipping market where the rules of the road are changing fast, and technology is the only way to stay ahead of both regulators and competitors. Dorian LPG's strategy is a clear example of balancing proven technology, like scrubbers, with next-generation solutions, such as dual-fuel propulsion and advanced digitalization. It's a pragmatic, two-pronged approach that cuts costs now while preparing for a zero-carbon future.

This focus on technical upgrades is defintely critical. The International Maritime Organization's (IMO) efficiency standards, like the Energy Efficiency Design Index (EEDI) Phase 3, require all new ships built by 2025 to be 30% more energy efficient than those built in 2014. That's a tough benchmark. Dorian LPG is using technology not just to comply, but to generate a competitive edge through lower fuel costs and better operational performance.

Dorian LPG's investment in dual-fuel (LPG) propulsion vessels offers a 20%+ fuel cost advantage over older ships.

The move to dual-fuel Very Large Gas Carriers (VLGCs) is Dorian LPG's long-term bet on cleaner fuel. As of early 2025, the company's fleet includes four dual-fuel ECO VLGCs, with the first, the Captain Markos, delivered in March 2023. This technology allows the vessels to run on Liquefied Petroleum Gas (LPG) cargo instead of traditional marine fuel oil, which has a significant economic benefit.

Here's the quick math on the fuel cost advantage: In the second quarter of the 2025 fiscal year (ending September 30, 2024), the fuel differential-LPG as fuel versus the compliant Low-Sulfur Fuel Oil (LSFO)-was approximately $185 per metric ton. That's a huge operational saving that goes straight to the bottom line, plus you get the environmental benefit of reduced carbon dioxide ($CO_2$) emissions, which is about 15% lower when using LPG compared to compliant fuel.

Digitalization of fleet operations improves route optimization and fuel consumption monitoring.

Dorian LPG is actively using digital tools to squeeze more efficiency out of every voyage. They use systems like Kongsberg Digital's Vessel Insight to aggregate operational data across their fleet of 22 VLGCs, giving analysts a single source of truth for vessel performance. But the real-time gains come from route optimization software.

The company adopted Sofar Ocean's Wayfinder platform to use highly accurate, real-time weather data for dynamic route adjustments. This isn't just theory; it translates directly into cash savings and lower emissions. From October 2023 to December 2024, the use of this platform delivered quantifiable results:

• Average cost savings of $26,000 per voyage.
• Average reduction in fuel consumption of 9% per voyage.
• Average reduction of 77.5 metric tons of $CO_2$ emissions per voyage.

One good voyage pays for itself many times over.

New engine designs and hull coatings are defintely needed to meet stricter efficiency standards.

To comply with the IMO's efficiency mandates, Dorian LPG is continuously upgrading its existing fleet, not just relying on new builds. Their current generation of ECO VLGCs already incorporates advanced design elements like electronically controlled engines, larger propellers, and advanced hull designs to maximize energy efficiency on a ton-mile basis.

A key focus is on hydrodynamic efficiency. The company is investing in technical enhancements, including the application of Hempel's Hempaguard silicone-based, low-friction hull coatings. These coatings minimize drag by preventing marine growth (biofouling), which can dramatically increase fuel consumption. They also install hydrodynamic enhancing fins, like Mewis ducts, to improve water flow and propulsion efficiency. This is a necessary capital expenditure to keep the fleet's carbon intensity rating (CII) competitive.

Scrubber technology adoption on non-dual-fuel vessels mitigates high-sulfur fuel price risk.

While dual-fuel is the future, scrubbers are the critical bridge technology for the present. Dorian LPG has made a significant investment in exhaust gas cleaning systems (scrubbers) to comply with the IMO 2020 sulfur cap without having to use the more expensive Low-Sulfur Fuel Oil (LSFO).

As of the 2025 fiscal year, 15 of Dorian LPG's owned vessels are fitted with scrubber units. This allows them to burn cheaper High-Sulfur Fuel Oil (HSFO). This flexibility is a huge financial advantage when the price spread between the two fuels is wide. Here is how that played out in the most recent reported quarter:

The daily savings of nearly $2,000 per scrubber-fitted vessel provides a strong cash flow buffer, especially when freight rates fluctuate. It's a smart way to manage fuel price volatility, which is a constant risk in this business.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Legal factors

International Maritime Organization (IMO) regulations, like the Carbon Intensity Indicator (CII), heavily influence fleet deployment strategy.

The International Maritime Organization (IMO) regulations are fundamentally changing how Dorian LPG Ltd. manages its Very Large Gas Carrier (VLGC) fleet, moving decarbonization from a theoretical goal to a legal mandate. The Carbon Intensity Indicator (CII) and Energy Efficiency Existing Ship Index (EEXI) are the primary drivers here. Since the CII came into force in January 2023, 2025 is a critical year because vessels that receive a 'D' rating for three consecutive years or an 'E' rating for one year must submit a corrective action plan to their flag state in 2026.

For Dorian LPG's fleet of 25 modern VLGCs, including 20 ECO VLGCs and four dual-fuel ECO VLGCs, the strategy is less about massive retrofits and more about operational optimization, or slow steaming. The risk is that charterers will increasingly prefer 'A' or 'B' rated vessels, which could lead to a two-tier market, forcing lower-rated ships to accept lower Time Charter Equivalent (TCE) rates. Dorian LPG is also preparing for the European Union's (EU) own measures, which are already creating quantifiable costs.

The immediate financial pressure comes from the EU Emissions Trading System (EU ETS), which began phasing in for shipping in 2024. For 2025, the required surrender of EU Allowances (EUAs) increases from 40% of verified emissions in 2024 to a full 70% of emissions for voyages to and from the EU. This regulatory step-up is expected to nearly double the EU ETS compliance cost for carriers in 2025 compared to 2024. Also, the FuelEU Maritime regulation, effective January 1, 2025, mandates a 2% reduction in the yearly average greenhouse gas (GHG) intensity of energy used by vessels calling at EU ports, with non-compliance penalties set at a steep €2,400 per metric ton of fuel that fails to meet the standard.

Compliance with US and EU environmental and financial disclosure laws adds administrative burden.

As a US-listed company, Dorian LPG is a Large Accelerated Filer, meaning it faces the highest level of scrutiny under new US and EU disclosure mandates. The administrative burden and associated costs are rising as the global focus shifts to Environmental, Social, and Governance (ESG) reporting.

The US Securities and Exchange Commission (SEC) Climate Disclosure Rule, while subject to legal challenges, requires Large Accelerated Filers to begin collecting climate-related data for the Fiscal Year 2025, with the first reports due in 2026. This necessitates new internal systems for Scope 1 and Scope 2 emissions tracking and climate-related financial risk assessment. Similarly, the EU's Corporate Sustainability Reporting Directive (CSRD) is rolling out, requiring companies to align their reporting with European Sustainability Reporting Standards (ESRS).

While the specific dollar amount for new ESG compliance staff and systems is embedded in the company's overhead, the overall General and Administrative (G&A) expenses for the three months ended March 31, 2025, were $8.3 million. This figure, despite being a slight decrease from the prior year due to other factors, still contains the increasing costs of legal, accounting, and internal control enhancements necessary to meet these complex, cross-jurisdictional disclosure requirements. Honestly, the cost of getting the data right is the biggest near-term risk here.

Changes in maritime liability and insurance costs due to increased geopolitical risk are a factor.

Geopolitical volatility, particularly in key shipping choke points like the Red Sea and the Strait of Hormuz, has directly impacted the cost of maritime liability insurance for all VLGC operators, including Dorian LPG. This is a clear operational expense risk.

The Protection and Indemnity (P&I) clubs, which provide liability coverage for approximately 90% of the world's oceangoing fleet, implemented general rate increases for the February 2025 renewal period. Major clubs targeted average premium increases ranging from 4% to 7.5%, driven by rising claims severity, global inflation, and the higher cost of reinsurance due to increased geopolitical risk. This rise feeds directly into the company's vessel operating expenses (OpEx).

Here's the quick math on OpEx: Dorian LPG's vessel operating expenses per vessel per calendar day rose to an average of $11,143 for the fiscal year ended March 31, 2025, up from $10,469 in the prior year. This increase of $674 per day is a multi-factor increase, but the rising P&I premiums and war risk insurance surcharges are a key component of that upward pressure, alongside drydocking costs. Plus, the US Oil Pollution Act of 1990 (OPA 90) imposes virtually unlimited liability on shipowners for oil pollution in US waters, which keeps liability insurance premiums high for all US-trading vessels.

New regulations on ballast water management require ongoing capital expenditure for retrofits.

The International Maritime Organization's Ballast Water Management (BWM) Convention, which mandates the D-2 standard (requiring on-board treatment systems) for all ships since September 8, 2024, requires ongoing capital expenditure (CapEx) for the fleet.

Dorian LPG has been proactive, but the requirement still necessitates capital allocation. The company previously estimated the cost for installing a Ballast Water Management System (BWMS) on certain VLGCs to be approximately $0.8 million per vessel. These costs are a component of the company's total vessel capital expenditures, which for the fiscal year ended March 31, 2025, were part of a larger figure of $18.9 million in payments for a vessel under construction and vessel capital expenditures.

This CapEx is non-negotiable compliance spending. What this estimate hides is the operational downtime for installation, which typically occurs during a scheduled drydocking, and the ongoing maintenance and compliance testing costs. The IMO also introduced new amendments in February 2025, including a protocol for compliance monitoring devices and a comprehensive review plan, ensuring this is a continually evolving cost center.

Dorian LPG Ltd. (LPG) - PESTLE Analysis: Environmental factors

You're looking at Dorian LPG Ltd. (LPG) and the environmental landscape is defintely the most dynamic area right now. The pressure from global regulators is intense, and it maps directly to your bottom line. The simple takeaway is this: Dorian LPG's modern, dual-fuel fleet is positioned to capitalize on the regulatory-driven obsolescence of older vessels, but they must manage the emerging challenge of methane slip to maintain their 'green' premium.

IMO's 2050 greenhouse gas (GHG) reduction targets force accelerated fleet renewal and retrofitting plans.

The International Maritime Organization (IMO) has set a clear path to net-zero emissions by or around 2050, which is forcing a massive capital reallocation across the shipping industry. The interim targets are already aggressive: a reduction in GHG emissions by at least 20% (striving for 30%) by 2030, and at least 70% (striving for 80%) by 2040, all compared to 2008 levels.

This isn't just a suggestion; it's a hard deadline backed by a new Net-Zero Framework, approved in April 2025 and set for adoption in October 2025. This framework includes a global economic measure that will price carbon. For ships exceeding the base target for Greenhouse Gas Fuel Intensity (GFI), the cost of acquiring remedial units (a form of carbon credit) is priced at up to $380 per ton of CO2 equivalent for the upper tier deficit.

Here's the quick math: a higher carbon price makes older, less efficient vessels prohibitively expensive to run, accelerating the need for new, compliant ships. Dorian LPG's strategy of having a young fleet-with four dual-fuel ECO VLGCs as of the fiscal year ended March 31, 2025-is a direct response to this trend.

CII ratings penalize less efficient vessels, potentially sidelining older tonnage and tightening vessel supply.

The Carbon Intensity Indicator (CII) regulation, which rates vessels from A (best) to E (worst), is now in its third year, making 2025 a pivotal point. The required rating is a 'C' or better, but the required index tightens by about 2% annually.

If a vessel receives a 'D' rating for three consecutive years or an 'E' rating once, the owner must submit a corrective action plan. This is a commercial death sentence for a vessel. Charterers, particularly those with strong Environmental, Social, and Governance (ESG) mandates, are already prioritizing A- and B-rated ships. This market pressure effectively sidelines older, less efficient VLGCs, tightening the overall vessel supply and boosting charter rates for modern, compliant ships like Dorian LPG's.

LPG, as a lower-carbon fuel, gives Dorian LPG a competitive edge in securing long-term, 'green' charters.

LPG as a marine fuel burns much cleaner than traditional very low-sulfur fuel oil (VLSFO), offering a significant carbon reduction advantage. Dorian LPG, with its modern fleet of 25 VLGCs, including the four dual-fuel vessels, is well-positioned.

This fuel flexibility is a powerful commercial tool. Charterers are willing to pay a premium for 'green' voyages to meet their own Scope 3 emissions reduction goals. For the fiscal year ended March 31, 2025, Dorian LPG reported Time Charter Equivalent (TCE) revenue of $39,778 per available day, demonstrating strong commercial performance in a market that values efficiency.

The competitive advantage is clear:

• Secure longer-term charters with energy majors.
• Command premium charter rates for dual-fuel flexibility.
• Reduce risk of CII non-compliance for the modern fleet.

Increased scrutiny on methane slip from dual-fuel engines is a developing environmental challenge.

While LPG is a cleaner-burning fuel, the use of dual-fuel engines introduces a new environmental risk: methane slip. Methane is a potent greenhouse gas, with a Global Warming Potential (GWP) about 28 times that of CO2 over a 100-year period.

Regulators are paying attention. FuelEU Maritime now includes methane slip in its compliance framework, and the default slip factor for some dual-fuel engines is set at 3.1% of fuel use.

Engine manufacturers are actively working to reduce this, with new technologies aiming for slippage values notably below 1% of fuel used by 2027. This means Dorian LPG must closely monitor the performance of its dual-fuel engines and be prepared to invest in after-treatment solutions or operational adjustments, like avoiding prolonged low-load gas operation, to mitigate this risk and protect the 'green' status of its most advanced vessels.