In the largest new shipbuilding programme planned so far by an Indian company, Shipping Corporation of India Ltd (SCI) has invited expressions of interest (EoI) from global shipyards to construct eight very large gas carriers (VLGCs) of 88,000 cubic metre capacity each, in a deal valued at around $950 million.
The EoI has been issued on behalf of a proposed joint venture (JV) to be led by SCI, which will hold a 50 per cent stake. The remaining partners include Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), Oil and Natural Gas Corporation Ltd (ONGC) and Sagarmala Finance Corporation Ltd.
Under the proposal, two VLGCs will be built at an international shipyard with proven experience of delivering at least three VLGCs over the past five years. The remaining six vessels are to be constructed at an Indian shipyard through a technical tie-up, collaboration, joint venture or strategic alliance with the same global shipbuilder.
Of the eight VLGCs planned, IOCL will deploy four vessels, while BPCL and HPCL will induct two each to meet their LPG transportation requirements.
SCI said the EoI aims to assess the modalities, infrastructure, technology and capabilities of shipyards for constructing VLGCs in India. Based on the responses received, the company may either invite bids from shortlisted applicants or issue a global tender for procurement of the vessels.
The proposed JV plans to acquire a total of 59 vessels over the next five years, through a mix of second-hand purchases and newbuildings at Indian shipyards, with an estimated investment of up to ₹15,000 crore. The fleet will include very large crude carriers (VLCCs), VLGCs, Suezmax and Aframax tankers, medium-range product tankers and offshore vessels.
SCI said the JV will focus on purchasing, owning, operating and managing vessels for EXIM and coastal shipping of crude oil, petroleum products and other hydrocarbon cargoes.
Chinese shipbuilders have been barred from participating in the EoI, in line with the July 2020 order issued by the Department of Expenditure, Ministry of Finance. Chinese yards may participate only if registered with the competent authority.
The shipbuilding contracts will be executed between the successful bidder and SCI or the proposed JV company.
