Petronet mulls shipping arm

New Delhi, June 4 (UNI) Petronet LNG Ltd (PLL) plans to set up a shipping arm to transport gas to its liquefied natural gas terminals for which it will form joint ventures with shipping majors.

The petroleum major has already shortlisted shipping companies through a global tendering process for the purpose.

Among those in fray include the combine of Mitsui, Exmar, MISC and K Line, industry cources said.

The PLL arm will hold 49 per cent stake in the proposed shipping JVs with the ship owners controlling the balance 51 per cent stake.

The company plans to charter two LNG tankers of 1,65,000 to 1,75,000 cubic-metre capacities each from ship owners and operators to ship gas to its proposed Kochi terminal for 25 years.

However, the ships would be required only after the Kochi terminal is ready.

Petronet is expected to finalise the engineering procurement contract for its Kochi LNG terminal towards the end of this month.

UNI