July 30, 2026: India's top refiner, Indian Oil Corp (IOC) (IOC.NS), opens new tab, is looking to acquire a 50% stake in very large gas carriers (VLGCs), according to a tender document, as it prepares to increase imports of liquefied petroleum gas (LPG) from the United States.

IOC would be the first Indian refiner seeking ownership of VLGCs. The company currently relies mainly on time-chartered tankers. Indian state fuel retailers are set to increase purchases of U.S. LPG, used mainly as cooking gas, from 2027.

U.S. LPG is typically more expensive for Indian buyers because of the longer voyage and higher freight costs, an Asian LPG trader said. "The biggest challenge in buying U.S. LPG is not availability but freight rates," the trader said.

IOC is seeking VLGCs with ⁠a capacity of 80,000 to 93,500 cubic metres that are no more than 12 years old, according to the tender document, which was issued to a limited number of companies.

(Source: Reuters)