India’s First Chemical Tanker Order Advances Shipbuilding Ambitions
Swan Defence and Heavy Industries Limited (SDHI), located in India, confirmed that it has received its first shipbuilding order as part of the revitalization of its operations. The order, which comes from a European shipowner, is both the country’s first for a chemical tanker and aligns with India’s ambitions to develop into a leading global shipbuilder.
The order was placed by Bergen, Norway-based Rederiet Stenersen, a 50-plus year old operator of chemical/product tankers. The company currently has a fleet of 19 vessels, all equipped to operate in the harsh conditions of the North Europe trade. The order, which is valued at $227 million, is the company’s first foray into Indian shipbuilding, and they note that it was placed after a comprehensive technical and commercial evaluation. A Letter of Intent was signed in November 2025.
The order is for six tankers, each 18,000 dwt and approximately 150 meters (492 feet) in length. The first vessel is due for delivery in 33 months, and the company has an option for six additional vessels after the first group.
The vessels will be designed by Marinform AS and StoGda Ship Design & Engineering and classed by DNV. Built to Ice Class 1A standards, the tankers will feature advanced dual-fuel LNG-ready hybrid propulsion, enabling multiple operational modes supported by high levels of automation.
Swan Defence and Heavy Industries Limited (SDHI), formerly Reliance Naval and Engineering Limited, was acquired and restarted in 2024 after the bankruptcy of the prior owners. The company aspires to be a large, world-class builder of commercial vessels and other projects, including heavy fabrication. They note the revitalized SDHI shipyard, which is located in Pipavav, Gujarat, on India’s west coast, operates the country’s largest dry dock (662 meters by 65 meters) and has a fabrication capacity of 164,000 tonnes per year.
The company’s director, Vivek Merchant, highlighted that the order is a demonstration of India’s growing commercial shipbuilding ecosystem. The government of Prime Minister Narendra Modi is taking steps to realize the Prime Minister’s call for India to become a top 10 global shipbuilding nation by 2030 and a top five shipbuilder by 2047.
The government outlined its Shipbuilding Financial Assistance Scheme as part of the effort to support the industry and attract international interest. The program was amended just days ago to include product/chemical tankers.
The tanker order follows the announcement that CMA CGM intends to build containerships in India. The government and industry have also been courting other major companies, including Maersk and MSC.
Northern Lights has Deals With Shipping Lines to Double CO2 Transport Fleet
The Norwegian CO2 storage initiative, which became the first commercial operation for carbon capture and storage, announced a new deal that will double the company’s fleet by 2029. This comes just months after the company completed its first injection of liquid CO2 for permanent storage.
Northern Lights, which is a joint venture between Equinor, TotalEnergies, and Shell, reports it has struck a new charter deal with major shipping companies, including existing partner Kawasaki Kisen Kaisha (“K” Line), while adding MISC Berhad and Mitsui O.S.K. Lines (MOL). Under the new agreements, “K” Line and MSC concluded one charter, and a second will be awarded in April 2026. Two additional charter agreements have been awarded to MOL.
Under the terms of the agreements, the three shipping companies will own the new vessels, which will operate under charter to Northern Lights. Northern Light also said it is increasing the size of each vessel, with the first three vessels awarded to each have a capacity of 12,000 cbm of liquified CO2.
The new ships will be built by Dalian Shipbuilding Offshore in China and by HD Hyundai Heavy Industries. Deliveries will range between the second half of 2028 and the first half of 2029.
HD Hyundai confirmed it has received the order for two vessels from MOL. It reported the 12,000 cbm ships will measure 150 meters (492 feet) in length. The first class of ships currently operated by Northern Lights are 150 meters (426 feet) in length. HD Hyundai said the new class will be among the largest medium-pressure LCO2 carriers designed to transport captured carbon dioxide in liquid form.
Northern Lights has taken delivery of three 7,500 cbm vessels, Northern Pioneer, Northern Pathfinder, and Northern Phoenix. K Line operates these vessels under an agreement with Northern Lights. A further sister is currently under construction in China for delivery this year. It will be owned and operated by Berhard Schulte, a part of the Schulte Group.
Commenting on the new ship orders, Tim Heijn, Managing Director of Northern Lights, said they are building the first dedicated fleet for CO2 shipping. Doubling the number of ships and expanding capacity, he said, will enable Northern Lights to optimize its operations and increase flexibility.
The project received approval to launch the operation in May 2025 and reported it completed its first injection into the permanent storage reservoir 2,600 meters under the seabed in August. Already, the company had also announced plans for Phase 2, which will increase transport and storage capacity from 1.5 million tonnes to a minimum of 5 million tonnes of CO? per year.
As a commercial supplier, Northern Lights contracts with large emitters for the capture of their CO2. It is stored, liquefied, and transported aboard the company’s ships to the receiving facility in Norway. From there it is injected into the offshore permanent storage reservoir.
The company is contracting with major industrial companies, including, Heidelberg Materials’ cement factory in Brevik, and Hafslund Celsio’s waste-to-energy plant in Oslo, Norway. In addition, the Northern Lights JV has signed commercial agreements with Yara in the Netherlands, Ørsted in Denmark, and Stockholm Exergi in Sweden
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