LNG shipping – Set for a take off! - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

LNG shipping – Set for a take off!

Aug 10, 2000

The Indian shipping companies are foraying into the Liquefied Natural Gas (LNG) transportation in a big way. With multinationals setting up power other and LNG based projects in India, the demand for LNG is expected to go up sharply since LNG is one of the key inputs used for power generation. Petronet LNG, which proposes to have two terminals at Dahej and Kochi, would require four LNG vessels for moving 7.5 metric tonnes of LNG annually. Three Indian shipping lines, that have already tied up with the foreign consortia, bidding for the LNG movement for Petronet LNG. This includes Shipping Corporation of India (SCI) and Matsui-OSK of Japan, Great Eastern Shipping (GESCO) with SK Shipping of Korea and Varun shipping with Han Jin of Korea.

Meanwhile, Greenfield Shipping, a joint venture between SCI, Mitsui-OSK and Enron has bagged the order for the Enron’s Dabhol project to transport 2 million tonnes of LNG annually from the Persian Gulf. Compared to the world LNG carrier capacity of 8.8 m gross registered tonnage (grt), the Indian grt is disappointing and this is expected to change in the coming years.

World Merchant Fleet as on FY99 LPG Carrier LNG Carrier
World Fleet    
Number of ships 957 108
GRT (m) 8.4 8.8
Age 15 14
Indian Fleet    
Number of ships 11 -
GRT (m) 0.15 -
Age 13 -

The LNG traffic projections are estimated at 53 m tonnes by FY2020 as per the Vision-2020 report on the Indian port sector. As the demand is expected to go up, many companies have already placed orders for new LNG carriers to expand their LNG handling capacities. Shell International Gas Limited, for example, has already placed an order with Mitsubishi Heavy Industries Ltd. for the construction of two LNG carriers of 135,000 cmc each. Shipping Corporation of India’s Laxmi, the 137,100 cubic million tonne LNG carrier, would be delivered by FY02 (estimated cost US $ 189 m).

As the freight rates are moving up as demand continues to exceed supply, in terms of shipping capacities, realisations are expected to improve. With domestic consumption of LNG in India expected to go up (currently around 21 million tonnes per annum), LNG transportation is set to take off in a big way.

Equitymaster requests your view! Post a comment on "LNG shipping – Set for a take off!". Click here!


More Views on News

G.E.SHIPPING Announces Quarterly Results (1QFY21); Net Profit Up 966.8% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, G.E.SHIPPING has posted a net profit of Rs 5 bn (up 966.8% YoY). Sales on the other hand came in at Rs 11 bn (up 36.5% YoY). Read on for a complete analysis of G.E.SHIPPING's quarterly results.

G.E.SHIPPING Announces Quarterly Results (3QFY20); Net Profit Up 10.7% (Quarterly Result Update)

Feb 14, 2020 | Updated on Feb 14, 2020

For the quarter ended December 2019, G.E.SHIPPING has posted a net profit of Rs 3 bn (up 10.7% YoY). Sales on the other hand came in at Rs 11 bn (up 10.9% YoY). Read on for a complete analysis of G.E.SHIPPING's quarterly results.

More Views on News

Most Popular

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

The 'Seedhi Baat, No Bakwaas' View on ITC (Profit Hunter)

Oct 12, 2020

Is ITC an investment or a speculation at current levels?

How to Shortlist the Best Stocks for Trading (Fast Profits Daily)

Oct 7, 2020

In this video, I'll show you how to identify a confluence of factors in the market which will point you to the best stocks to trade.

The Inflection Point for Defence Stocks is Getting Closer (Profit Hunter)

Oct 9, 2020

Few Indian defence companies could use their engineering capabilities to eventually become global leaders.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Oct 20, 2020 01:32 PM


  • Track your investment in G.E.SHIPPING with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks