Shipping Corporation of India Ltd (SCI) has launched an expression of interest to build eight 88,000-cbm very large gas carriers (VLGCs) in a programme valued at about $950 million, according to the EoI.  

Two vessels are to be constructed at an international yard with a track record of at least three VLGC deliveries over the past five years, while the remaining six will be built in India by the same global shipbuilder through a technical tie-up, collaboration, joint venture or strategic alliance.  

The project sits within a proposed joint venture led by SCI with a 50% stake alongside Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Oil and Natural Gas Corporation Ltd and Sagarmala Finance Corporation Ltd.  Beyond the VLGC order, the JV plans to acquire around 59 vessels through a combination of second-hand purchases and newbuildings from Indian yards, covering very large crude carriers, VLGCs, Suezmax and Aframax tankers, medium range tankers and offshore vessels.

Total investment is estimated at up to ?15,000 crore ($1.64bn).  

Within the VLGC tranche, Indian Oil is allocated four ships, with Bharat Petroleum and Hindustan Petroleum set for two each.  

SCI is moving forward with the state-owned oil and gas groups to establish the JV to purchase, own, operate and manage tonnage for EXIM and coastal transport of crude oil, petroleum products and other hydrocarbon cargoes.  

Chinese shipyards are excluded from the EoI under a July 2020 order from the Department of Expenditure in the Ministry of Finance and may participate only if registered with the competent authority.  

The EoI aims to test market capability for constructing two VLGCs overseas and six in India. Depending on responses, SCI may proceed with bidder invitations or a global tender enquiry.  

“Indian and international shipyards can have a technical tie-up, collaboration, joint venture or strategic alliance to participate in the EoI.”

The final shipbuilding contract will be signed by SCI or the JV entity. 

Shipping Corporation of India Ltd is a government-owned shipping enterprise headquartered in Mumbai, operating commercial vessels across domestic and international trades. 

Source: Port News 

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