India's energy company to announce second invitation to tender for LNG carriers charter, newbuilding contracts
India's state-run gas trader and supplier Gail India Ltd. plans to call for bids for contract to build three LNGCs. This will be the second try of Gail to solicit bidders that would share their shipbuilding technology with Indian shipbuilders. The company intended to charter nine LNG tankers, with three of them to be built at an Indian shipyard, the local Indian media outlets reported.
The previous tendering process has reportedly been called off as Korean and Japanese bidders appeared to be reluctant to set up a joint venture to transfer their technology to India.
Gail has to charter the fleet of LNG carriers for the period of 20 years to transport gas from the US as from 2017. The company had to buy one third of the vessels but the problem is that Indian shipbuilders are not experienced in construction of LNG tankers. Besides, the local cash-strapped shipyards need investments and technology and to beef up their capabilities.
The tendering process had been postponed several times with no bidders due to the stringent tender requirements before it was decided to re-issue the tender "with changed norms".
