ABG Shipyard LTD, GTT collaborate for LNG technology
Recently, ABG Shipyard Ltd secured the technology collaboration, becoming the third Indian company to build liquefied natural gas (LNG) carriers. The company is now preparing for the tender, which will be issued by GAIL (India) Ltd, to hire nine LNG ships for hauling gas from the US.
To ensure a smooth maritime transportation and storage of LNG, ABG Shipyard Ltd has tied up with the France-based Gaztransport and Technigaz (GTT), which is one of the world’s top designers of containment systems.
GAIL is not planning to order the nine ships at once, rather it will time charter the carriers for 20 years from fleet owners, who will construct three of the nine ships in India.
Earlier this year, GAIL dismissed a tender, issued on August 1, 2014, to hire the LNG carriers, since the ‘Make in India’ initiative restrained the global fleet owners from bidding in the tender. The local yards failed in forging partnerships with veteran global yards, when the tender was dismissed.
“We have signed an agreement with GTT for technology transfer for building LNG ships,” a spokesperson of ABG Shipyard Ltd confirmed.
A Mumbai-based shipping industry executive, who has been working in the LNG shipbuilding sector for more than a decade now, said, “This arrangement will work,” stating that it is a positive move for the Indian shipbuilding sector.
“Technology from the French firm and construction supervision from one of the leading LNG ship operators has proved to work in countries, such as China, when it started out on building LNG carriers,” he added.
Commenting on this collaboration, the spokesperson of Shipping Corp of India Ltd (SCI) said, “We will continue to focus on investing in LNG ships. It has earned steady revenue for us in these difficult market conditions for global shipping.” SCI has previously invested in four LNG carriers.
In addition, Cochin Shipyard Ltd and Larsen & Toubro Shipbuilding Ltd also signed pact with Samsung Heavy Industries Co. Ltd and Hyundai Heavy Industries Co. Ltd, respectively for LNG ship construction technology.