Diana Shipping Enters LPG Market with Strategic Investment in Dual 7,500 cbm Newbuilds

Athens-based Diana Shipping Inc. has announced its latest move into the liquefied petroleum gas (LPG) sector through a strategic partnership involving two 7,500 cbm semi-refrigerated newbuildings. The vessels, slated for delivery between Q4 2025 and Q1 2026, represent a shift in Diana’s traditionally dry bulk-focused strategy, signaling diversification and a step toward emerging market opportunities in gas shipping.

The vessels will be constructed at Hyundai Mipo Dockyard, a yard renowned for mid-size gas carrier construction. Each of the ships is being built with eco-friendly and dual-fuel capabilities, further reinforcing Diana’s intent to align with decarbonization trends and future fuels readiness. The partnership includes a 50% equity stake in a joint venture with castor maritime-affiliated entities, forming part of a larger investment strategy geared toward alternative maritime assets.

According to the announcement, the ships will be employed on medium- to long-term charters, though the names of the charterers were not disclosed. The move gives Diana a foothold in the LPG trade, which continues to benefit from steady demand across Asia and the Middle East, driven by petrochemical consumption and energy transition policies.

This latest development reflects a broader industry trend of dry bulk companies exploring other vessel segments, especially where dual-fuel capabilities and long-term charter coverage can offer financial resilience. With freight markets showing volatility in traditional sectors, such diversification may serve to balance risk and open new revenue streams.

Diana Shipping’s President and CEO, Semiramis Paliou, highlighted the transaction as “a natural progression in the company’s growth trajectory,” pointing to LPG’s increasing strategic importance in global energy logistics. She also emphasized the long-term potential of gas transportation in supporting the transition away from heavier fossil fuels.

The addition of these dual-fuel gas carriers expands Diana's asset portfolio beyond its core dry bulk fleet, which includes Capesize, Panamax, and Ultramax vessels, and is expected to position the company more competitively in a decarbonizing market.

With this step into gas shipping, Diana Shipping joins a growing list of traditional maritime players broadening their asset base as the sector reshapes itself for the post-2025 regulatory era.