India's state-owned Cochin Shipyard Ltd (CSL) has entered into a Memorandum of Understanding (MoU) with Korean firm Samsung Heavy Industries for technology partnership in constructing liquefied natural gas (LNG) carrying vessels, reports local media.
“Cochin Shipyard has signed an agreement with Samsung Heavy Industries to collaborate on building LNG ships,” a shipping ministry official said.
The MoU, which was inked after protracted negotiations will enable the city-based public sector yard to respond to a tender for LNG carrier construction soon-to-be-re-issued by GAIL (India). An earlier tender issued by GAIL (India) in this regard was cancelled in February this year after it failed to elicit any response.
While Cochin Shipyard officials remained tight-lipped on the MoU, sources in the shipping sector privy to development, said it demonstrated a diplomatic victory as External Affairs Minister Sushma Swaraj had campaigned for the collaboration during her visit to South Korea in December last.
However, with this, Cochin Shipyard becomes the second local yard to secure a technology tie-up for LNG ships from one of the three top shipbuilders in South Korea, the world’s top shipbuilding nation.
L&T Shipbuilding Ltd, a unit of Larsen & Toubro Ltd, has signed a non-disclosure agreement with South Korea’s Hyundai Heavy Industries Co. Ltd to collaborate on building LNG carriers.