GAIL to buy third of domestic-built LNG carriers

Under the petroleum ministry directive, GAIL of India decided to buy a third of LNG vessels that should be build domestically for the purpose of importing LNG from the U.S.

This decision is lauded as a boost for Indian shipbuilding industry although some analysts are doubting the feasibility of Indian ship makers meeting the demand given the experience, or lack of it, reports Financial Express. Companies that will greatly benefit from this decision are L&T and Pipavav, among others.

Sources said that a 20-year period guarantee of the LNG vessels’s performance will be a part of the contract.

LNG World News Staff, July 28, 2014; Image: Pipavav