Sources closely linked to Gail say the Mumbai-based shipbuilder is in talks with French LNG containment-system designer GTT to obtain a licence that would enable the yard to build membrane-type LNG vessels.

They add that PDOE is also scouting around for prospective international LNG shipping players to set up a joint venture for the planned newbuilding contracts.

The shipbuilder believes it is the only Indian yard capable of constructing LNG tonnage since it has the largest drydock in the country that can accommodate vessels of up to 400,000 dwt.