IndianOil scouts stakes in LPG carriers ahead of higher US imports from 2027
Indian Oil Corporation is seeking up to two stakes in very large gas carriers to secure freight capacity for planned increases in US LPG purchases from 2027. The move is aimed at managing shipping costs for cooking-gas supply, with vessels to be reflagged to India.
What happened
Indian Oil Corporation (IOC) · IndianOil is seeking up to two stakes in VLGCs to secure shipping capacity ahead of higher U.S. LPG imports from 2027, aiming to
Key facts
- 50% stake
- 80,000 to 93,500 cubic metres VLGC capacity
- Vessels no more than 12 years old
- Up to two VLGCs
- August 5 pre-bid meeting
- September 7 bid deadline
- 2027 planned increase in U.S. LPG purchases
Why this matters
IOC’s search for up to two carrier stakes creates partnership opportunities with shipowners and LNG/LPG logistics players able to support Indian reflagging and long-term US supply routes.
What to watch
- Announcement of IOC's VLGC acquisition, equity partnership, or long-term charter agreement.
- US LPG export terminal capacity additions and IOC-linked offtake agreements beginning in 2026-27.
- Spread between US Gulf Coast LPG prices plus freight and Middle East LPG delivered prices in India.
- VLGC newbuild prices, spot charter rates, and vessel availability for 2027 delivery.
- Indian policy incentives or mandates affecting Indian-flagged gas carriers.
- Growth in domestic LPG demand, subsidy requirements, and IOC import volumes.
- Seek minority stakes, joint ventures, or bareboat-charter structures for one to two VLGCs.
- Negotiate multi-year US LPG supply contracts aligned with vessel availability from 2027.
- Advance Indian flag registration, crewing, insurance, and regulatory approvals for acquired vessels.
- Use controlled freight capacity to support larger seasonal LPG inventory builds and reduce dependence on spot cargo timing.
- Evaluate whether other state refiners and LPG importers should pool shipping capacity or pursue similar vessel-control strategies.