Government Wants GAIL India to Import US LNG on Indian Owned Carriers

India is working on ensuring that GAIL India’s move to import LNG from the US should be on carriers with substantial Indian ownership, reports financial daily Business Standard.

GAIL India is expected to import six million tonnes (mt) of LNG from the US annually, says the newspaper. Imports are supposed to commence in September 2017. 

According to Business Standard, Indian government wants Indian shipyards to enter into collaboration with foreign shipyards to develop domestic ship building capacity in LNG space.

"We want to make sure that if there is a diplomatic tussle in future, it should not affect our LNG import plans. If Indian shipyards are roped in into the scheme of things, GAIL would be able to float its tender for award of time charter contract based on that, which would be evaluated on a life cycle-cost basis," says senior petroleum ministry official, reports Business Standard.

The ministry is planning to have time charter party agreements with major shipyards by the third quarter of 2014, in order to give adequate time for global majors for tie us and also ship building, the newspaper reports.

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