Shipping Corporation of India Expands Fleet With Delivery of 53,999 DWT Very Large Gas Carrier

Shipping Corporation of India Ltd (SCI), the country’s largest state-run maritime transporter, has taken delivery of a Very Large Gas Carrier (VLGC) with a deadweight tonnage (DWT) of 53,999. The vessel marks a strategic addition to SCI’s specialized fleet and reinforces its position in the energy transportation segment amid rising demand for liquefied petroleum gas (LPG) across India and global markets.

This acquisition is part of SCI’s broader fleet augmentation strategy and reflects its renewed focus on expanding tonnage capacity after a prolonged pause in vessel purchases.

Key Highlights From the Delivery

- SCI takes delivery of a VLGC with 53,999 DWT capacity  
- Vessel designed for LPG transport, compliant with international safety and environmental standards  
- Strengthens SCI’s specialized fleet under its Bulk Carrier and Tanker Division  
- Expected to support long-term charter operations with Indian oil marketing companies  
- Adds to SCI’s total fleet strength of over 70 vessels  

Strategic Importance of the VLGC Addition

The newly inducted VLGC enhances SCI’s ability to meet growing domestic and international LPG transportation needs. Key strategic benefits include:

- Increased capacity to lift and deliver nominated LPG quantities under charter agreements  
- Improved fleet efficiency with modern vessel design and fuel optimization features  
- Enhanced competitiveness in securing long-term contracts with oil and gas majors  
- Strengthened presence in the energy logistics value chain  

The vessel is expected to be deployed on time-charter contracts, potentially with Indian Oil Corporation or other state-run entities, contributing to stable revenue generation.

Fleet Expansion and Business Outlook

This delivery follows SCI’s recent decision to acquire two second-hand VLGCs, each with a cargo capacity of approximately 82,000 cubic meters. The company has been actively expanding its fleet to capitalize on favorable charter rates and rising LPG demand, which is growing at 4 to 6 percent annually in India.

SCI’s fleet now includes:

- VLGCs for LPG transport  
- LNG tankers managed under joint ventures  
- Crude and product tankers  
- Bulk carriers and container vessels  

The company’s total deadweight tonnage exceeds six million tonnes, making it the only Indian shipping firm to reach this milestone.

Technical and Operational Capabilities

The VLGC is equipped with advanced safety systems and complies with the latest international maritime regulations. Operational features include:

- Double-hull construction for enhanced safety  
- Automated cargo handling systems  
- Energy-efficient propulsion and navigation technologies  
- Real-time monitoring for voyage optimization  

SCI’s Specialized Vessels Cell will oversee the technical and commercial management of the vessel, ensuring smooth operations across ports and charter routes.

Policy Support and Market Conditions

The acquisition was facilitated by recent policy changes from the Reserve Bank of India, which eased advance remittance norms for ship imports. This allowed SCI to execute the transaction without the earlier requirement of bank guarantees or standby letters of credit for amounts exceeding $5 million.

Market conditions remain favorable, with second-hand VLGC prices near all-time highs and charter rates averaging $41,000 to $42,000 per day. SCI’s strategic timing positions it to benefit from strong demand and attractive returns.

Conclusion: SCI Strengthens Energy Transport Portfolio With New VLGC

The delivery of the 53,999 DWT Very Large Gas Carrier marks a significant step in Shipping Corporation of India’s fleet modernization and expansion strategy. As LPG consumption rises and charter opportunities grow, the vessel will play a critical role in enhancing SCI’s operational capacity and revenue potential. With a diversified fleet and renewed investment momentum, SCI is well-positioned to consolidate its leadership in India’s maritime energy logistics sector.

Sources: Economic Times Infra, Governance Now, Shipping Corporation of India Official Website