Update: L&T denies LNG technology deal with HHI

Larsen & Toubro denied it has signed a technology transfer deal with Hyundai Heavy enabling it to build LNG carriers at its Kattupalli shipyard, near Chennai.

“We wish to inform at this stage that Larsen & Toubro Limited and Hyundai Heavy Industries have only signed a Memorandum of Understanding to enable participation in expected GAIL tender for LNG carrier,” the company said in a written reply to the Stock Exchange.

“This is in anticipation of a possible retendering by GAIL to invite bids from potential ship owners for chartering of LNG carriers,” Larsen & Toubro added.

The Economic Times of India reported on Tuesday that Larsen & Toubro signed a memorandum of understanding with HHI in order to bring to India complex technology needed for the construction of LNG carriers.

India’s shipyards expect GAIL to re-launch its tender for nine LNG carriers that was previously cancelled as South Korean shipyards were reluctant to sign similar deals with their counterparts in India. Three out of nine ships had to be built in India which was a major obstacle.

Things have changed recently as consistent efforts of the Indian Government with the Korean Government for persuading the Korean shipyards to collaborate with their Indian counterparts have given results as Samsung Heavy Industries signed a similar deal with Cochin shipyard.

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LNG World News Staff; Image: L&T Shipbuilding