India’s Cochin Shipyard Limited has entered into an agreement with South Korean shipbuilder Samsung Heavy Industries (SHI) to formalize technical cooperation for building LNG ships in India.
The deal was signed during the first day of the Maritime India Summit taking place in Mumbai.
The MOU is set to bring SHI USD 400 million for collaborating with Cochin Shipyard, which is the only local yard capable of meeting GAIL’s tender requirements.
The two companies plan to bid for the country’s first LNG carriers under a tender issued by the country’s gas utility Gail India Ltd for the construction of nine LNG carriers.
The plan envisages for the third of the newbuilds to be built locally so as to boost Indian shipbuilding capabilities. However, as local builders lack the necessary know-how international builders, predominantly from South Korea are teaming up with local shipyards to compete for the work.
The LNG carriers ordered overseas are to be completed by May 2019, whereas the batch to be built by domestic shipyards should be delivered between July 1, 2022 and June 30, 2023.
Separately, GAIL India’s USD 7 million tender has sparked the interest of Japanese shipowners.
Specifically, a consortium comprising Japanese shipping companies Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui & Co Ltd and another group including Mitsubishi Corporation, Kawasaki Kisen Kaisha (K Line) and GasLog Ltd are reported to have submitted their bids to hire the LNG carriers intended to transport gas from the US.
World Maritime News Staff