Indian Oil seeks 50% stakes in VLGCs as US LPG imports set to rise
Indian Oil is tendering for stakes in up to two very large gas carriers to support potentially doubling contracted US LPG imports from 2027, diversify away from Gulf supply and contain freight costs. Bids are due September 7 after an August 5 pre-bid meeting.
What happened
Indian Oil Corporation (IOC) · Indian Oil plans to acquire a 50% stake in very large gas carriers to support higher US LPG imports, reduce dependence on Gulf
Key facts
- 50% stake
- VLGC cargo capacity of 80,000-93,500 cubic metres
- vessels no more than 12 years old
- up to two VLGCs per bidder
- current US LPG imports of about 2.2 million tonnes annually
- contracted import volume could double
- June US LPG import volumes were nearly 145% above February
- pre-bid meeting on August 5
- bid submission deadline of September 7
Why this matters
IOC’s vessel co-ownership tender creates an opening for shipowners, logistics partners and LPG suppliers to structure long-term capacity, supply and freight-risk-sharing alliances.
What to watch
- Tender outcome after the September 7 bid deadline and whether IOC obtains 50% ownership in one or two vessels.
- IOC disclosures on US LPG contracted volumes, suppliers and 2027 start dates.
- VLGC newbuild prices, charter rates and vessel-delivery schedules.
- US LPG export-terminal expansion and Gulf Coast loading constraints.
- Panama Canal transit conditions and freight spreads between US Gulf, Middle East and Indian discharge ports.
- India LPG demand growth, subsidy policy and IOC marketing-margin trends.
- Award stakes in one or two VLGCs and negotiate long-term operating, chartering and cargo-allocation agreements.
- Expand term LPG purchase contracts with US exporters and trading houses ahead of 2027 delivery ramps.
- Rebalance LPG sourcing away from the Gulf while retaining Middle East volumes as a geographic hedge.
- Increase import-terminal, storage and inland distribution readiness for higher seaborne LPG throughput.
- Use owned shipping capacity to optimize cargo timing and potentially trade surplus freight exposure.