Asia/Pacific News
Indian Yards In Line to Build Four LNG Tankers
Indian shipbuilders may get a boost from state-owned natural gas firm GAIL (India) Ltd, which is likely to have domestic yards build four of the 14 liquefied natural gas (LNG) tankers it will need to start moving gas from the U.S. in 2017, business news site Live Mint reports.
The company will spend about $2.8 billion total on the 14 gas carriers.
"Once we get the technology to build LNG ships, we are in the game," said one executive at an Indian shipbuilder.
"Then, we can build more such ships for Indian gas importers, take-up export orders and also repairs, maintenance and dry-docking of such carriers."
A GAIL executive said no final decision has yet been made on the ship orders, but people present at a meeting Thursday said the company planned to source the four ships domestically.
"The technology to construct such carriers doesn't exist in India," a GAIL spokesperson said.
"It will be an open tender wherein companies who have the wherewithal are open to participate.
"GAIL will comply with the instructions of the ministry."
GAIL will not order the ships directly, instead hiring them from owners, but it may incorporate a condition in its tender that four of the ships it hires should be built at Indian yards.
One source said GAIL may split the 14 ship hiring tender among more than one owner and operator, but the details of the orders, and the Indian yards to be involved, must be settled through tenders and negotiations.
Shipping Corporation of India (SCI) has already signed a cooperative agreement with GAIL involving the shipping of U.S. LNG.
Chinese shipyards have also been seeking a bigger share of the growing market for LNG carriers, something that requires specialised shipbuilding abilities.
