In recent times, the shipbuilding industry has shown it helps to build the type of vessels that, in the event of cancellation, can be used by the country constructing them. LNG carriers are, in the case of India, at the centre of this debate.
While LNG demand is growing and there is exponential growth of renewable energy installations in the country, existing large newbuilding capacity mainly in South Korea, Japan and China, and a huge LNG tonnage overhang, creates a dilemma for policymakers.
