Mitsui and GasLog for LNG tanker tender

Vol 19, PW 13 (10 Mar 16) News in Brief
     

Cochin Shipyard is the only likely Indian shipyard in GAIL's tender to hire nine or possibly 11 LNG tankers to import US LNG for 20 years.

But it now seems GasLog and Mitsui OSK Lines (MOL) will also bid. "GasLog and MOL are willing but wanted the bid deadline extended to March 31 (from February 29)," reports a source.

And on February 26 GAIL did indeed extend the deadline to March 31 as requested. With GasLog and Mitusi now in the race, other companies are hoping to form joint ventures with them to bid, speculate industry sources.

Another source explains there is little interest in the tender because of the high risk. "GAIL is unwilling to take any risk and wants it all carried by the bidders," he says.

"Nobody is comfortable with that." Other Indian yards are worried about getting into the LNG tanker business when South Korean and Chinese yards monopolise the market. Cochin is believed to be ready to quote $300m to build a tanker but a South Korean yard can do this for $200m.