LNG Vessel Construction to Get a Boost as India Approves New Dry Deck
Indian government has given its approval for a new dry dock within the existing premises of Cochin Shipyard Limited (CSL) to augment construction of technologically advanced large vessels including LNG vessels.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, green lighted the proposal, India’s shipping ministry said in a statement.
This big sized dry dock is a critical requirement of CSL to promote ship building and is a step in the direction of "Make in India" initiative of the government, the ministry said.
The ministry expects the project proposal would generate employment within the country. “It may be noted that ship building and ship repair is a labour intensive industry, having a multiplier effect on employment generation and thereby help in the process of nation-building by way of socio-economic development and growth of manufacturing sector in the country. Apart from direct employment of 300 personnel, about 2000 personnel would be indirectly employed when the project becomes fully operational.”
In June, CSL and Chennai-based Global United Shipping India put in a joint bid to build six new LNG carriers for GAIL India. In December 2015, CSL was granted a licence agreement by France’s Gaztransport & Technigaz (GTT) for the construction of LNG carriers using GTT’s membrane containment systems. GAIL has an agreement for purchase of 3.5 million tons a year of LNG from Sabine Pass on a FOB basis for 20 years. The supplies are expected to begin from the first quarter of 2018. The company also has a second 20-year deal with Dominion Resources for supply of 2.3 million tons per annum. Supplies from Dominion will also commence in 2018.
India’s oil minister on Monday said the government is taking various steps to increase the share of natural gas in share of India’s fuel basket. Country’s LNG imports are expected to witness robust growth in coming years as global gas prices are likely to remain subdued.