A consortium of shipping companies is considering converting two liquefied natural gas tankers into floating storage units to help meet rising demand for the fuel in India, according to two people familiar with the matter.
Petronet LNG Ltd. currently uses the units, with a capacity of 138,000 cubic meters each, to import LNG from Qatar, but doesn’t plan to renew a lease beyond 2028.
The consortium — called India LNG Transport Co. — could put the vessels to use on India’s east coast after retrofitting them in South Korea, said the people, who asked not to be named as they are not authorized to speak with the media.
India LNG Transport is a collaboration between state-owned Shipping Corp of India Ltd. and Japan-based Mitsui OSK Lines Ltd., Nippon Yusen KK and Kawasaki Kisen Kaisha Ltd. The companies didn’t immediately respond to requests for comment.
India, currently the world’s fourth-largest LNG buyer, is investing heavily in import infrastructure to help meet Prime Minister Narendra Modi’s target for gas to reach 15% of the energy mix by 2030, from less than 7% now.
Imports could rise to 150 million tons by 2030, a seven-fold increase from 2023, Petronet’s Chief Executive Officer Akshay Kumar Singh said in February.