India's top refiner scouts stakes in gas carriers as it plans higher US imports
- Indian state fuel retailers are set to increase purchases of U.S. LPG, used mainly as cooking gas, from 2027
NEW DELHI: India’s top refiner, Indian Oil Corp (IOC), is looking to acquire a 50% stake in very large gas carriers (VLGCs), according to a tender document, as it prepares to increase imports of liquefied petroleum gas (LPG) from the United States.
IOC would be the first Indian refiner seeking ownership of VLGCs. The company currently relies mainly on time-chartered LPG and crude tankers.
IOC did not immediately respond to an emailed request for comment.
Indian state fuel retailers are set to increase purchases of U.S. LPG, used mainly as cooking gas, from 2027.
U.S. LPG is typically more expensive for Indian buyers because of the longer voyage and higher freight costs, an Asian LPG trader said.
“The biggest challenge in buying U.S. LPG is not availability but freight rates,” the trader said.
India plans up to quarter of 2027 LPG imports from US, sources say
IOC is seeking VLGCs with a capacity of 80,000 to 93,500 cubic metres that are no more than 12 years old, according to the tender document, which was issued to a limited number of companies.
Bidders may offer up to two VLGCs, the document showed, although IOC did not specify how many vessels it intends to acquire.
Indian Oil LNG, an IOC joint venture, reserves the right to acquire one or more vessels under the tender, the document said.
IOC will hold a pre-bid meeting on August 5, while commercial and technical bids are due by September 7.
The vessels will be reflagged to India after the acquisition, the document added.