Energy trader BGN International has chartered one VLGC at a rate that signals the LPG market will continue to be strong into next year.

Gas sources said the Dubai-based trading company has time-chartered one scrubber-fitted VLGC from Eneos Ocean of Japan for 12 months at more than $12m. The charter period is from November to October 2023.

They said BGN is paying more than $1m per month for the Mitsubishi-built 78,900-cbm Yuyo (built 2008), despite over 50 VLGC newbuildings set to be delivered next year and existing vessels having to comply with the Energy Efficiency Existing Ship Index.