| According to the guidelines of the Directorate-General, Shipping, an Indian company will need to have a 26 per cent stake in a joint venture. | |
| Gail India Ltd, Indian Oil Corporation and NIGEC are also interested in stakes in the venture. "The structure of the venture is yet to be finalised. But, tentatively, it will be a 50-50 partnership between Indian and Iranian companies," an SCI executive told Business Standard. | |
| Gail and IOC will import 5 million tonnes per annum of LNG for $20 billion for a period of 25 years from 2009, according to the recently-concluded sale and purchase agreement with Iran. | |
| SCI sources said 2 LNG tankers would need to be bought for the venture. "LNG will be imported on a free-on-board basis, where India will make the shipping arrangement. If there is bidding, the SCI will bid as the proposed joint venture," the company executive said. | |
| SCI had recently signed a memorandum of understanding with the NITC for transporting LNG from Iran. | |
| This is not the first time that the SCI is looking at a joint venture for transporting LNG. India LNG Transport Company 1&2 was formed by the SCI with 3 Japanese companies Mitsui OSK Lines, NYK and K Lines, and Qatar Shipping Company Ltd, for construction, ownership and operation of two LNG tankers. | |
| SCI's links with IRISIL and Irano-Hind dates back to 1975. The company set up a joint venture with IRISIL, called the Irano Hind Shipping Company, based in Teheran. | |
| SCI holds 49 per cent equity in Irano-Hind, which was set up for part-ownership of bulk carriers only. SCI now plans to part-own LNG tankers in the proposed joint venture. | |
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