India's Cochin Shipyard Ltd to Invest $200mn to Build LNG Vessels

India’s state owned Cochin Shipyard (CSL) plans to invest about Rs 1,200 crore ($200 million) to set up a dry dock for building LNG carriers, The Hindu newspaper reported last week.

Cochin Shipyard would get order for one of the three LNG carriers being built in the country, Union Minister for Shipping Nitin Gadkari told reporters last week.

It will be the first time these vessels will be built in the country.

CSL is in the process of reaching a tie-up with French engineering firm GTT for the construction of the LNG vessel and a team from the company will be here this week for talks.

The company's move comes after Gail India issued a tender last month to hire nine ships to transport LNG from the US.  The company wants to hire newly built ships to transport up to 5.8 million tons per year of LNG it had contracted in the US. 

The bidders will be required to quote for lots of three vessels, with a provision that under each lot, one of the ships shall be built in an Indian shipyard, according to the tender.