In a strategic move to ramp up liquefied petroleum gas (LPG) imports from the United States, India’s largest refiner, Indian Oil Corp (IOC), is planning to secure a 50% stake in very large gas carriers (VLGCs). This initiative marks a significant shift for the company, which traditionally relies on time-chartered vessels for its logistics. By opting for ownership, IOC aims to mitigate the high freight costs that currently make American LPG less competitive in the Indian market compared to other sources.

The tender specifies a search for vessels aged 12 years or younger, with capacities ranging between 80,000 and 93,500 cubic meters. Once acquired, these ships will be reflagged to India, strengthening the nation's domestic shipping capabilities ahead of an anticipated surge in U.S. LPG purchases starting in 2027. With technical and commercial bids slated for September 7, IOC is looking to gain greater control over its supply chain and shield itself from the volatility of global shipping rates.