India's top refiner IOCL scouts stakes in gas carriers as it plans higher US imports

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.

Also read: India plans up to quarter of 2027 LPG imports from US, sources say


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.

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.

IndianOil 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.