CSL Likely to Clinch L.N.G. Carrier Deal
Published: 08th June 2015 07:58 AM
KOCHI: Looks like good times are here to stay for Cochin Shipyard Limited (CSL)
. In a major development which could boost future prospects of CSL, two ambitious projects- LNG Shipbuilding and Building of Dredgers- are slowly becoming a reality for the public sector major in Kerala. Altogether these projects are worth Rs 2,000 crore. GAIL is all set to retender for the construction of three Liquefied Natural Gas (LNG) carriers by July, relaxing earlier conditions.
Also CSL and Dutch Shipbuilder Royal IHC would jointly build dredgers and engage in transfer of technology from IHC to CSL. The cost of a single dredger comes around to Rs 500 crore.
The earlier tender by GAIL to build LNG Ships floated on August 1, 2014, was aimed at hiring nine LNG carriers, with the condition that three of them be made in India. However, there were no takers for the tender, since local yards inexperienced in building such ships, failed to get expert LNG shipbuilders to share technology for the same. The technology for building LNG ships is currently available with Japanese and South Korean shipyards.
The LNG Shipbuilding project worth Rs 1,500 crore is likely to be awarded to CSL along with other two shipyards as Cochin Shipyard has held talks with South Korean based Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering for collaboration. Cochin Shipyard Ltd, Pipavav Defence and Offshore Engineering and Larsen and Toubro shipyards are three shipyards in the country selected for building the LNG ship for GAIL(India) Limited to transport LNG from US by 2017.
In September last year, the Shipping Minister had announced three projects for CSL.
They were setting up a new dry dock yard at a cost of Rs 1,200 crore, building LNG ship at a cost of Rs 1,500 crore and manufacture of dredgers Rs 500 crore. But during the time of earlier tender, CSL could not reach a consenus with any of the companies for technology share.
