GAIL altering LNG carriers tender to attract shipbuilding majors

As GAIL prepares to refloat its tender for chartering LNG carriers, India’s government is looking to offer foreign shipbuilders a five-year period to construct the vessels.

The state hopes this move will attract global LNG shipbuilding majors to build a third of the required 11 carriers in India, the Economic Times reports.

GAIL initially sought to hire 9 LNG newbuilds to transport U.S. LNG starting from 2017, but the Government pushed for every third vessel to be built domestically, in order to kick start Indian LNG shipbuilding industry.

The tender failed as Japanese and Korean shipbuilders showed no willingness to share expertise and technology.

GAIL’s Chairman BC Tripathi said that it has been agreed to offer foreign shipbuilders five years to build LNG carriers in India and two and a half years to construct the vessels abroad.

The company is reportedly planning to refloat the tender by the end of this month as efforts from the government have given results. Recently, Samsung Heavy Industries, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering have all agreed to cooperate with Cochin Shipyard, L&T Shipbuilding and Pipapav Shipyard, respectively.

LNG World News Staff; Image: GAIL