New LNG shipping policy insists on FOB delivery

Vol 3, PW 25 (19 Jan 00) News in Brief

Indias new LNG shipping policy will make it mandatory for Indian companies to import LNG on a Free on Board basis.

It is unclear if the same directive applies to foreign companies. R Vasudevan, Secretary, Department of Shipping, Ministry of Surface Transport (MOST), said the new policy will also make it mandatory to undertake a two-stage competitive bidding process price and technical in the selection of a shipper.

The aim of the new policy, according to Vasudevan, is to encourage Indian shippers to own and operate LNG vessels, either in partnership or alone. He said it is important that Indian shippers do not miss out on the opportunities provided by the LNG shipping business.

Industrial Credit and Infrastructure Corporation of India (ICICI) has completed a draft of the new policy.