Gail India, Shipping Corp of India in $3 bn LNG Carrier Talks

Shipping Corporation of India (SCI) and Gail India Limited are in talks to ink LNG carrier deal, reported Press Trust of India.

The two companies are likely to forge a tie-up under which Gail will acquire nine LNG ships for almost $3 billion and the SCI will run them, a senior official of the SCI said. 

SCI Director (liner and passenger services) Sarveen Narula said the shipper will have an option to pick up stake up to 25 per cent once a joint venture company is formed for the purpose and talks are held through respective ministries, Press Trust reported. 

"We are trying to buy nine LNG ships, not through SCI but through Gail. SCI will run those ships in partnership with Gail. We are actively working with Gail in selection of (other) partners. We may have the right to take up to 25 per cent of the stake in that (venture). The Memorandum of Understanding is being finalised. We are already been in talks with them. Very soon it will be done. It is brokered through the Government," Narula told Press Trust. 

SCI is currently running four LNG ships through joint venture companies with Japanese partners among others, in which the Indian public sector units holds 26 per cent stake.