HHI seeking new LNG shipbuilding partner in India

Hyundai Heavy Industries is reportedly on the lookout for a new partner in India, in order to be eligible for GAIL’s tender for building nine LNG carriers. 

HHI earlier had a deal with L&T Shipbuilding to jointly bid on GAIL’s tender, however, the latter decided to turn its attention to the defence sector, The Economic Times reported, citing an unnamed executive.

The South Korean shipbuilder contacted private and state-owned shipyards but no deal has yet been confirmed.

In case HHI doesn’t manage to find a partner, the construction of the ships for GAIL might to its two compatriots, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME).

GAIL is looking to build nine LNG ships of a cargo capacity of 150,000-180,000 cbm, enabling it to comply with its off-take commitments at Sabine Pass and Cove Point LNG projects in the U.S. from December 2017.

However, due to several postponements of the tender, the Indian company is already late with the acquisition of LNG carriers and splitting the order between two consortiums could increase the risk of delayed deliveries even further.

LNG World News Staff; Image: HHI