David Wu-led Saga LNG Shipping has signed a memorandum of understanding that could see it provide small-scale newbuildings to India-based Venerable LNG (VLNG).
The preliminary agreement comes as VLNG is developing terminal and infrastructure projects in the draught-restricted Bay of Bengal that could require two small LNG carriers.
Saga said it will be providing one or more 45,000-cbm LNG carriers, which will be built with its LNT A-Box cargo containment systems that have no restrictions on partial loading.
The company said the LNT45-S design newbuildings will have a fully laden draught of 7.8 metres.
VLNG managing director Mayank Garg told TradeWinds that his company is developing the terminal at Haldia on India’s east coast with capacity for one million tonnes per annum.
He said VLNG will need one or possibly two ships to supply this, with the quantity of vessels becoming clearer once the company has signed its agreements on LNG supply.
Garg said VLNG hopes to finalise both the supply and LNG shipping in the next two to three months.
The company plans to charter in the newbuildings on a long-term basis from Saga.
The managing director said VLNG has a “unique requirement” because these are draught-restricted ports and Saga’s design fits with this.
Garg said VLNG is currently completing permitting for Haldia and plans to start construction of the terminal in October with the aim of putting it into commercial operation by the end of 2022.
He revealed that his company, which states it envisages building four to five mid-scale LNG import and distribution hubs in the next five years, is also working on a couple of projects in the region to the south of Haldia.
Saga broke into the LNG market with its new midsize LNG carrier, the 45,000-cbm, LNT A-Box-type Saga Dawn (built 2019).
The vessel, which was four years in the making, finally shifted into commercial operation this year when it was deployed on a multi-month charter by Chinese trader Jovo.
Saga founder and chief executive Wu said: “Now that Saga Dawn is successfully trading, we redouble our efforts on developing new projects to grow our fleet of small to midsized vessels.”
Wu said the market needs “more innovative projects” like VLNG’s.
Speaking to TradeWinds last month, Wu said Saga will focus on small and medium-size LNG carriers in the 40,000-cbm to 100,000-cbm range for regional trading and project business.
The Saga Dawn is due to be open again for new business from July.
