Asyad Secures Scrap Windfall on Sohar LNG Carrier Sale

Key Moments

Sohar LNG, a 137,248-cbm LNG carrier built in 2001 and 50%-owned by Asyad Shipping, was sold for recycling at Alang, India, for $23m.
The transaction is expected to generate a $2.1m gain for the partners and supports Asyad Shipping’s fleet renewal strategy.
The scrapping of Sohar LNG has lifted this year’s LNG carrier demolition count to six vessels.

Strategic Sale of Aging LNG Carrier

Oman’s Asyad Shipping has announced the sale of its long-serving LNG carrier, Sohar LNG, which it co-owned with Japan’s Mitsui OSK Lines (MOL). The vessel, with a capacity of 137,248 cbm and built in 2001, has been committed to recycling at the Indian scrapyard hub of Alang.

Asyad disclosed to the Muscat Stock Exchange that the vessel, in which it holds a 50% stake, was sold for $23m. The company reported that delivery to the buyer took place earlier on Tuesday.

Valuation data cited in the statement indicate that the Sohar LNG was assessed by VesselsValue at $17.4m both for continued trading and for demolition prior to the sale. The ship has been part of Asyad’s fleet since 2003.

Financial Impact and Fleet Renewal Focus

As a result of the disposal, Asyad and its partners expect to recognize a gain of $2.1m. The company framed the sale as consistent with its broader fleet optimization agenda.

Asyad explained that the transaction fits into its ongoing efforts to modernize its fleet and enhance operational efficiency. “Asyad Shipping has continued to explore opportunities to divest older tonnage as planned,” it stated.

The owner added that it remains focused on disciplined fleet renewal, noting that proceeds from such divestments will be reinvested into expanding the fleet.

Vessel	Type	Built	Capacity (cbm)	Light Displacement (ldt)	Sale Price	VesselsValue Assessment	Ownership
Sohar LNG	Moss-type, steam turbine-driven LNG carrier	2001	137,248	33,000	$23m	$17.4m (trading and demolition)	50% Asyad Shipping, 50% MOL and partners (historical structure detailed below)

Market Context and Demolition Activity

The recycling of Sohar LNG has contributed to a rise in LNG sector scrapping activity, bringing the number of LNG carriers demolished so far this year to six. Specialist brokers reported that the steam turbine-driven vessel was sold to a cash buyer for recycling.

Notable Recent Voyage and Final Transit

The 33,000-ldt, Moss-type ship attracted attention in early April when it became the first LNG carrier to leave the Middle East Gulf via the Strait of Hormuz since the Iran war began at the end of February.

According to Kpler data, the vessel, sailing in ballast, paused off the Omani coast for a brief period before proceeding across the Arabian Sea on a meandering route. It ultimately arrived off Alang on 2 June, ahead of delivery for recycling.

History, Ownership Evolution, and Charter

The LNG carrier started service under the name Lakshmi under MOL’s ownership. It had been ordered in connection with a time charter arrangement with the now-collapsed US energy trader Enron for its Dabhol power plant project in India.

Following Enron’s collapse, the Omani government intervened, acquiring and redistributing Enron’s stake in the vessel. Ownership was subsequently structured with MOL and the Oman government each holding 40%, and Shipping Corp of India (SCI) owning the remaining 20%.

Oman and MOL later acquired SCI’s 20% interest at a stage when Oman was beginning to develop an LNG fleet. The ship became the first LNG carrier for Asyad Shipping, previously known as Oman Shipping Co. Asyad Shipping is 80% owned by the Oman Investment Authority, the country’s sovereign wealth fund.