SCI’s Fleet Expansion: Two VLGCs Set to Anchor India’s Energy Future

Image Source: Trendlyne

Shipping Corporation of India Ltd (SCI), India's leading shipping company, has entered into a Memorandum of Agreement (MoA) to acquire two Very Large Gas Carriers (VLGCs) as part of its fleet expansion initiative. The two ships purchased, with a cargo carrying capacity of 82,000 cubic meters (CBM) each, are expected to be commissioned in SCI's fleet in the ongoing quarter of FY 2025-26.

The purchase is part of SCI's continued quest to boost its presence in the shipping of gas and upgrade its fleet. The two VLGCs are used, which fits the company's realistic build-up of its fleet. The acquisition is set to increase SCI's capability in the shipping of bulk quantities of gas, meeting the increasing energy transport demand in the area.

Key Highlights:

SCI has signed an MoA for two secondhand VLGCs with capacity of 82,000 CBM.
The ships are to be delivered in FY 2025-26, and they are expected to join the fleet in the current quarter.
This acquisition is one of a broader fleet expansion plan, which was already approved by the board and encompasses various ship types.
The acquisition establishes SCI as the top shipping operator in India, especially in the gas carrier industry.

The expansion follows continued attempts to privatize SCI, with the government holding 63.75% stake yet to be sold.

SCI's newest addition to its fleet reinforces its commitment to supporting India's growing energy transport needs and its leadership in the seafaring sector.

Source: Capital Market, NSE India, MarketScreener, Economic Times, Maritime Gateway