SME Times News Bureau | 31 Jul, 2014
State-run gas utility GAIL India Wednesday said it has decided to hire from Indian shipbuilders a third of the ships needed for ferrying liquefied petroleum gas (LNG) from the US.
"Under the advice of Ministry of Petroleum and Natural gas, GAIL will shortly come out with a LNG ship charter hire tender specifying, inter-alia, that one ship out of every lot of three ships each would be built in India," GAIL said in a filing to the BSE.
GAIL had earlier not favoured the inclusion of domestic shipbuilders in the tender on grounds that Indian shipyards would need at least six years and massive finances to build cryogenic LNG carriers.
"Quotes for three such lots of three ships each would be specified in the tender. It is proposed to allow 6 years delivery period for the Indian built ships as against about two and half years for the foreign built ships," GAIL said.
The LNG imports from the US are due to start in 2017.
