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

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


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


Sep 24, 2020 (Close)


  • 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