IndianOil Corp (IOC), is looking to acquire a 50% stake in
very large gas carriers (VLGCs), according to a tender document,
as it prepares to increase imports of liquefied petroleum gas
(LPG) from the United States.
IOC would be the first Indian refiner seeking ownership of
VLGCs. The company currently relies mainly on time-chartered LPG
and crude tankers.
IOC did not immediately respond to an emailed request for
comment.
Indian state fuel retailers are set to increase purchases of
U.S. LPG, used mainly as cooking gas, from 2027.
U.S. LPG is typically more expensive for Indian buyers
because of the longer voyage and higher freight costs, an Asian
LPG trader said.
“The biggest challenge in buying U.S. LPG is not
availability but freight rates,” the trader said.
IOC is seeking VLGCs with a capacity of 80,000 to 93,500
cubic metres that are no more than 12 years old, according to
the tender document, which was issued to a limited number of
companies.
Bidders may offer up to two VLGCs, the document showed,
although IOC did not specify how many vessels it intends to
acquire.
IndianOil LNG, an IOC joint venture, reserves the right to
acquire one or more vessels under the tender, the document said.
IOC will hold a pre-bid meeting on August 5, while
commercial and technical bids are due by September 7.
The vessels will be reflagged to India after the
acquisition, the document added.
(Reporting by Nidhi Verma; Editing by Kevin Buckland)
Published on July 29, 2026
