Pipavav, DSME Ink Pact on Construction of LNG Ships
- Business & Finance
India’s Pipavav Defence and Offshore Engineering Co. Ltd has signed a cooperation deal with South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering Co. Ltd.
Under the deal, DSME would share its technology and knowledge on construction of LNG carriers, making Pipavav eligible for construction of Gail’s LNG fleet, India’s daily Live Mint reports.
Up till now, three Indian shipyards have found South Korean partners willing to share their technology on construction of LNG ships that domestic shipbuilders lack.
India’s gas utility Gail India Ltd is about to issue a new tender for the construction of nine LNG carriers which is expected to facilitate the bidding process and remove hurdles that have prolonged the project.
The previous tender has been scrapped after it failed to attract bidders.
The initial plan envisaged for the third of the newbuilds to be built locally so as to boost Indian shipbuilding capabilities.
However, it seems that this very precondition turned away international bidders as they were not that eager to share their technology with local builders.
In order for Gail to be able to start its import activities in 2017, the tender should be finalized and awarded by May in order for the company to be able to start transportation of LNG from USA to India.
World Maritime News Staff