IndianOil Corp is moving to secure its liquefied petroleum gas (LPG) supply chain by seeking to acquire 50% stakes in very large gas carriers (VLGCs).
The state-owned refiner’s tender documents reveal plans to increase LPG imports from the United States, a strategic pivot that marks the first time an Indian refiner has attempted to control its own shipping logistics for this commodity segment.
The acquisition strategy addresses a critical vulnerability in the energy supply chain: reliance on third-party charter rates for long-haul transport.
By taking equity positions in the vessels themselves, IndianOil aims to stabilize logistics costs and ensure consistent delivery schedules from US Gulf Coast terminals.
This vertical integration move comes as global energy markets navigate shifting trade flows and persistent volatility in freight rates.
The development highlights a broader trend among major Asian energy consumers seeking greater control over upstream and midstream assets.