L&T in talks with Hyundai for LNG carriers

Mumbai: L&T Shipbuilding, a subsidiary of Mumbai-based engineering colossus Larsen & Toubro, is in talks with South Korea’s Hyundai Heavy Industries to locally build at least three of the nine liquefied natural gas (LNG) carriers that are to be hired by gas importer GAIL India Ltd to haul gas from the US for a 20-year period, starting September 2017.

The tender for a total of nine LNG ships, including three to be constructed in India, was issued by GAIL on August 1 last year. The deadline for submitting bids was extended three times, and bidders have time until February 17 to submit technical and commercial bids.

No Indian yard has been able to qualify as none of them had built LNG carriers earlier, and needed to tie up with specialist overseas yards to get the requisite technology.

Separately, government-owned Cochin Shipyard has launched talks with two South Korean shipyards to build three sophisticated LNG ships locally.

Japanese yards are also looking at tying up with Indian yards too.


Shirish Nadkarni

Shirish Nadkarni is a management consultant and freelance international journalist, who has been writing on all spheres of Indian business for the past three decades for a number of reputed overseas publications. An avid sportsman, Nadkarni has represented India in international veterans' badminton since 1997, and was the 55+ age group doubles world champion in 2005.
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