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India's largest refiner is looking to buy stakes in US gas carriers, as it prepares for higher US imports

According to a document describing a bid, India's largest refiner, the Indian Oil Corp. (IOC), wants to buy a 50% stake in large gas carriers.

IOC will be the first refiner in India to own VLGCs. The company relies on LPG and crude oil tankers that are leased for a specific period of time.

IOC did not respond immediately to an email request for comment.

Indian state-owned fuel retailers will increase their purchases of U.S. cooking gas (LPG) from 2027.

A trader in Asian LPG said that U.S. LPG was typically more expensive to Indian?buyers due to the longer journey and higher freight 'costs.

The trader stated that the biggest problem in purchasing U.S. LPG was not availability, but freight costs.

According to the tender document that was sent to a small number of companies, IOC is looking for VLGCs of between 80,000 and 93,500 cubic meters, with a maximum age of 12 years.

The document stated that bidders could offer up to two VLGCs. However, IOC did not specify how many vessels they intend to purchase.

The document stated that IndianOil LNG is an IOC joint venture and reserves the right of acquiring one or more vessels through the tender.

IOC will host a pre-bid meeting on August 5. Commercial and technical bids are due by September 7.

The document also stated that the vessels would be re-flagged in India following the acquisition. (Reporting and editing by Kevin Buckland; Nidhh Verma)

(source: Reuters)