Indian Oil Corp seeks 50% stake in VLGCs to boost US LPG imports

India's largest refiner, Indian Oil Corp (IOC), has issued a tender to acquire a 50% stake in very large gas carriers (VLGCs). The vessels, sized between 80,000 and 93,500 cubic metres and no older than 12 years, would be the first VLGCs owned by an Indian refiner. IOC aims to increase imports of liquefied petroleum gas (LPG) from the United States beginning in 2027, shifting from its current reliance on time‑chartered LPG and crude tankers.

Bidders may offer up to two VLGCs, with a pre‑bid meeting scheduled for August 5 and commercial and technical bids due by September 7. Any acquired vessels will be re‑flagged to India, and IOC’s joint venture IndianOil LNG reserves the right to secure one or more ships under the tender.

The move reflects IOC’s strategy to secure supply chain control amid higher freight costs for U.S. LPG, which traders say are driven more by freight rates than availability.