IndianOil Corp Seeks Stake in Gas Carriers for U.S. LPG

IndianOil Corporation is seeking to acquire a 50% stake in very large gas carriers (VLGCs) to support planned increases in liquefied petroleum gas (LPG) imports from the United States beginning in 2027. This move would make the company the first Indian refiner to own such vessels, transitioning away from a reliance on time-chartered tankers.

The tender targets vessels with a capacity of 80,000 to 93,500 cubic metres and an age of no more than 12 years. Bidders may offer up to two vessels, which will be reflagged to India upon acquisition. IndianOil LNG Private Limited, a joint venture of the corporation, also reserves the right to acquire vessels under the tender. A pre-bid meeting is scheduled for August 5, with commercial and technical bids due by September 7.

This strategy follows a broader effort by Indian state-run oil marketing companies to diversify procurement and reduce dependence on Gulf suppliers following conflicts in West Asia and the closure of the Strait of Hormuz. Despite higher freight rates and longer shipping distances making U.S. LPG more expensive, imports have risen sharply, with June volumes nearly 145% higher than February.