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Bulk LPG carriers to seek extension of contract

It would help the owners settle the loan repayments, says association

September 03, 2022 10:12 pm | Updated 10:12 pm IST - CHENNAI


Bulk liquefied petroleum gas (LPG) tanker owners have planned to seek an extension of supply contract with public sector undertaking oil marketing companies (OMCs). These 5,500 tankers form a crucial link in the LPG supply chain in Tamil Nadu and its neighbouring States.

K. Sundarrajan, recently elected president of the Southern Region Bulk LPG Transport Owners Association, told The Hindu that the extension of contract was needed to help tanker owners, who were badly affected by the pandemic. “Perhaps for the first time, a large section of tanker owners had defaulted on loan repayments. A two-year extension of contract would help owners settle their dues and allow completion of on-going pipeline projects,” he said.  

Bulk LPG tankers, of which 4,000 are from Namakkal area, carry a bulk of the gas in south India. “Pipelines are laid everywhere and once those works are completed, we will know how many tankers would be required during the next contract period. Of the 5,500 that are under contractual obligation with the OMCs, already 400-odd do not have work. The present contract period ends in August next year,” he said. 

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