The Hindu Business Line : Transporting gas from Qatar to Petronet terminal — SCI consortium to order ship from Samsung

The 153,000 cbm capacity vessel is estimated to cost more than $200 million and will be delivered in 2009 when the transportation of the gas is due to start.

Kolkata , Dec. 28

THE shipping consortium, comprising the Shipping Corporation of India (SCI) and three Japanese lines, namely, Mitsui OSK, NYK Line and K Line, will place order with Samsung of Korea for building the LNG vessel to be used for transporting an estimated 2.5 million tonnes of gas annually from Qatar to the Dahej terminal of Petronet LNG.

The 153,000 cbm capacity vessel is estimated to cost more than $200 million.

It will take a few more months before the necessary formalities can be completed among the consortium partners and also with supplier and buyer of the gas and the formal order can be placed with the Korean yard, according to informed sources.

The vessel will be delivered in 2009 when the transportation of the gas is due to start.

The SCI-led consortium is all set to win the Rs 3,200-crore contract for transportation of additional quantities of LNG from Ras Gas of Qatar to the expanded Dahej terminal of Petronet LNG, after having emerged as the lowest bidder.

The other bidders for the contract included Great Eastern Shipping in association with Bahamas-based Teekay Shipping and the EXMAR-led consortium comprising EXMAR, the Belgian natural gas shipping firm, India's Varun Shipping and Indian Oil Corporation.

It might be noted that the two LNG vessels, "Disha" and "Raahi", belonging to the same SCI-led consortium and currently engaged in transporting LNG for same Petronet LNG from the same source, i.e. Qatar, were acquired from Daewoo, another major Korean shipbuilder, at lower cost of $158.5 million each.

The vessels, each of the capacity of 138,000 cbm, were delivered in 2001 and 2002.

The funding of the acquisition of the third LNG vessel is yet to be finalised by the SCI-led consortium.

In all probability, the same old 80-20 formula, i.e. 80 per cent loan and 20 per cent equity, will be followed.

In case of earlier two vessels, the equity was subscribed in the following proportions: SCI and Mitsui-OSK 29 per cent each, NYK 18 per cent, K Line nine per cent and the balance 15 per cent by either Petronet LNG or its nominee.

Petronet LNG nominated Qatar Shipping, which, therefore, held 15 per cent stake in each of two SPVs floated to fund the acquisitions of "Disha" and "Raahi".

All these details are yet to be firmed up for the third SPV still to be floated to fund the proposed acquisition.