Indian companies in late bid for GAIL LNG tender

A consortium formed by the Cochin Shipyard and Global United Shipping India recently bid jointly to build six liquefied natural gas carriers for GAIL under the utility’s US$7 billion tender. 

It was reported in April that two Japanese consortia, one comprising Mitsui OSK Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui & Co and the other comprising Mitsubishi Corporation, Kawasaki Kisen Kaisha and GasLog, have placed their bids for the tender that closed on March 31.

According to a report by Business Standard of India, the bids filed in by the Japanese groups were not fulfilling all conditions set out in GAIL’s tender, however, the bid by the two Indian companies is late.

GAIL is looking for nine LNG ships with 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 United States from December 2017.

An official at Global United Shipping was quoted as saying that the two companies are looking to start talks with GAIL to consider the late bid. The formal offer faced delays due to the size of the project, he said.

According to the bid, two of six vessels would be built at Cochin Shipyard while the remaining four would be built abroad.

Global United, which is 45 percent owned by Mitsui & Co, and Cochin Shipyard would also provide bridge vessels to carry the cargoes from the United States to India until the newbuilds are completed.

At the end of last year, Cochin Shipyard received the approval from France’s GTT to build LNG carriers with the Mark III membrane containment system.

LNG World News Staff