Blackstone and Eletson together in $700m, eight newbuild LPG JV

The investment and advisory firm and product tanker owner have joined forces to create the $700m outfit, which will swallow Eletson's five-strong fleet of medium size gas carriers, with Blackstone Tactical Opportunities providing equity capital to fund expansion through secondhand and newbuild acquisitions.

Eletson has also announced contracts for five 12,000 cu m semi-refrigerated vessels at Hyundai Mipo Dockyard, three 22,000 cu m semi-refs plus two options at Sinopacific Offshore & Engineering (SOE) and the acquisition of an existing 22,000 cu m vessel. The eight newbuidlings are due for delivery in 2015 and early 2016.

"We are delighted to partner with Blackstone as we look to expand Eletson's existing LPG platform. Our partner's expertise and global reach, including its exposure to the US energy sector, will help to grow the business successfully into new and existing markets," commented Lascarina Karastamati, president of Eletson Holdings.

"Through this partnership, we are committed to building a best-in-class, global owner and operator of LPG vessels that is a leader in its market segment," said Blackstone's tactical opportunities fund's Jasvinder Khaira, "We are thrilled to join Eletson and its strong management team in this new venture."

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