Cochin Shipyard to make LNG ships

Cochin Shipyard today signed an agreement with French technology company Gaztransport & Technigaz (GTT) for its maiden foray into liquefied natural gas (LNG) shipbuilding.
GTT, which holds patented technology for LNG ships, will give designs, engineering and supervision for building of the cryogenic carriers that transport natural gas frozen in its liquid form (LNG).
Cochin Shipyard has already tied up with Korea's Samsung to bid for state gas utility GAIL India Ltd's USD 7 billion tender for nine LNG ships, one-third of which have to necessarily be built at domestic shipyards.
Road Transport, Highways and Shipping Minister Nitin Gadkari said the technological tie-up will give a boost to Prime Minister Narendra Modi's Make-in-India initiative that seeks to boost local manufacturing and create jobs.

After this agreement, Cochin Shipyard will get a licence from GTT to manufacture ships. Besides assisting in designing, procurement and construction, GTT will also supervise the building of the LNG carrier at the Indian shipyard and also give guarantee for performance of the ship.
This will enable Cochin Shipyard to qualify to bid for the GAIL tender. Since Indian shipyards do not have LNG technology, a clause in the GAIL tender sought performance guarantee from shipbuilders.

Talking to the media after a pact signing, Gadkari said as part of the 'Make in India' programme, government is keen that one-third of the ships required by GAIL are built in India and Cochin Shipyard would be able to participate in the tender.

"It is the dream of the Prime Minister to make these (LNG) ships in India and particularly Cochin Shipyard now has all the capability after getting licence from GTT France. We feel the award of this licence by GTT is a major achievement in Make in India and will have far-reaching impact," he said.
He said Cochin Shipyard will now be able to explore the huge potential in the field of LNG carrier infrastructure in India and abroad.
"Make in India programme of this government includes major new initiatives designed to facilitate investment, faster innovation, protection to intellectual property and building best and world class infrastructure. These include simplifying and bringing in ease of doing business. We feel the award of this licence by GTT is a major achievement in Make in India programme," he said.

Hopeful of getting infrastructure status to Shipping Sector, the minister added, "LNG carrier segment is very crucial as domestic demand for LNG is increasing. In the Inland Waterways for the next generation we will use LNG as a fuel. Most typical aspect of LNG ship is cryogenic container and handling system as it has to be carried at -163 degree Celsius."
Petroleum and Natural Gas Minister Dharmendra Pradhan said under the GAIL contract, if three ships will be made one will be built in India and if nine ships are built then three ships will be built in India as there is a provision of manufacturing one-third ships here.

As per recent projections, LNG procurement in India is set
to grow by 4 per cent, he said adding there is a need to draw up a blueprint for the transport of this LNG to the hinterland for it further usage as a clean fuel.
The minister announced that the Ministry of Petroleum will initiate a workshop with the Shipping Ministry in a month to workout future LNG requirement.
Pradhan added the government would promote green fuel and in the days to come railways, long haul transportation, shipping line will be on LNG or alternative fuel.
CEO, GTT France Philippe Berterottiere said as far as the competitiveness of Cochin Shipyard in international market is concerned it needed to evolve from domestic market and compete in the international market.

Cochin Shipyard successfully completed a Mark-III Flex Mock-Up, which has been certified by GTT (Gaztransport et Technigaz), France, thereby completing all requirements to be licensed by GTT to build LNG ships for any client worldwide using their patented membrane containment system known as the Mark-III Technology, an official statement said.
GTT France is the world leader in design engineering and technology provider of membrane type containment systems for transportation and storage of LNG.
"LNG Vessels are very complex ships and only a few yards world over have the capability to build these ships. The most critical aspect of an LNG ship is its cryogenic containment and handling system as the LNG is carried at a temperature of -163 degrees. This requires foolproof cryogenic containment and safe handling and transfer system," it said.

CSL is now authorised to use GTT for any liquid gas carriers, more particularly the LNG carriers, the statement said adding, CSL now would be able to take part in the tender floated by GAIL for LNG carriers.
"GAIL has contracted substantial LNG from USA to be shipped out for the next 20 years. They are in the process of finalising transportation contracts with reputed LNG shipping companies who are to build vessels as per GAIL's specifications. The contracts would be for a 20 year period and vessels are to be positioned accordingly. The requirement is for upto 9 +2 (Optional) ships," it said.

Entering the LNG carrier technology area would set the yard on the technology growth path and will also lead to substantial improvements in areas like quality control, and environment, it said.
The yard has the technical strength and the basic shipbuilding capability to undertake construction of these complex vessels but LNG vessel construction needs up gradation of existing facilities/ systems in the yard and implementation of various protocols, it said.
Towards this CSL has forged partnership with Samsung Heavy Industries (SHI), Korea, who are amongst the leading yards in the world, the statement said.
CSL employees have undergone extensive training in SHI prior to starting construction of the Mark III Flex Mock up for the GTT licensing, it added.