Ravi Mehrotra’s London-based shipping and drilling operation Foresight Group is eyeing a fleet of 10 VLCCs and two LNG carriers to capitalise on Indian growth in the next couple of years.
The company has said it plans to invest $500m in India across shipping, port, offshore drilling and LNG sectors.
“The $1.85bn group has now finalised expansion plan for its shipping division and acquired a VLCC in 2018, which is successfully chartered with oil majors, and has decided to add five more VLCCs in 2019 focused on India’s demand of crude import,” a statement said.
However, Mehrotra told the Hindu Business Line that the company actually plans to acquire seven or eight large tankers next year, while it wants the gas vessels to import LNG into India.
In February, it bought the 306,000-dwt Front Circassia (built 1999), now renamed Agra, for a figure of around $18m from John Fredriksen.
The target is 10 VLCCs by 2020, according to its website.
Mehrotra said he is planning for India reaching critical mass in terms of growth over the next three to five years.
FSRU plans revealed
He added that Foresight is betting on LNG as the long-term solution for India, while investments in shipping crude will help it in the short-to-medium term.
About $250m will be spent on developing LNG and ports in India.
“Our idea is to identify and bring gas from various locations and investments will be in the entire chain from sourcing to landing and will be using next generation floating storage regasification unit (FSRU) and floating storage unit (FSU) for the purpose in the next five to seven years,” said Hitendra Solanki, head of projects for LNG and ports at Foresight.
The company also has two aframaxes, plus interests in restaurants, manufacturing and drilling.
