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BW forms product tanker joint venture with PAG

BW forms product tanker joint venture with PAG
BW Group and private equity firm Pacific Alliance Group (PAG) have teamed up to form a joint venture that will acquire 10 MR product tankers.

The joint venture BW Pacific will purchase 10 modern MR product tankers from Elandra, a company associated with Vitol Energy (Bermuda) Ltd.

“BW is pleased to form a joint venture with one of Asia’s leading investment managers and to have PAG as a partner as we expand in the product tanker segment,” said Andreas Sohmen-Pao, ceo of BW Group.

BW Pacific will have a fleet size of 37 MR and LR1 product tankers and will be managed by BW Group.

Chris Gradel, founder and managing partner of PAG, commented: “This is a very interesting time in the cycle for the industry and our joint venture with BW presents our investors with a unique opportunity to capture the potential upside in a recovery while relying on the operational excellence of a true industry leader.”