Indian Oil Corp. is pursuing a significant shift in its supply strategy by seeking 50% ownership stakes in very large gas carriers, marking a first for an Indian refiner. According to reporting from Business Standard, the company is accepting bids for vessels with carrying capacity between 80,000 and 93,500 cubic meters, with all eligible ships required to be no more than 12 years old. The move aims to reduce the company's reliance on volatile charter-market freight rates as it anticipates higher volumes of liquefied petroleum gas shipments.
The initiative aligns with India's broader energy diversification plans, which target sourcing up to one-quarter of the nation's LPG imports from the United States by 2027. By acquiring partial ownership in dedicated gas carriers, Indian Oil seeks to stabilize shipping costs and secure more predictable transportation for increased American LPG volumes—a strategic shift that could reshape import patterns in the global LPG market.
The move reflects growing efforts among major energy consumers to take greater control over their supply chains and hedge against freight rate volatility. For Indian Oil, investing directly in vessel assets represents a calculated bet that ownership stakes will provide cost certainty and operational flexibility as the company adjusts to new sourcing arrangements in the coming years.