Swan Defence, formerly known as Pipavav Shipyard, has secured a significant $227 million contract from the Norway-based shipping firm Rederiet Stenersen.

The deal involves the construction of six advanced 18,000 deadweight ton (DWT) chemical tankers, marking a major boost for India's shipbuilding sector.

This contract underscores the growing international confidence in Indian maritime capabilities, particularly from Swan Defence's state-of-the-art facility in Gujarat. Pipavav Shipyard, rebranded under Swan Energy's defence and shipbuilding arm, has been ramping up its operations amid India's push for indigenous manufacturing under the Atmanirbhar Bharat initiative.

Rederiet Stenersen, a prominent Norwegian operator specialising in chemical transportation, selected Swan Defence after a rigorous evaluation process. The choice highlights the yard's expertise in handling complex vessel designs that meet stringent IMO (International Maritime Organisation) standards for chemical carriers.

Each of the six tankers will boast a deadweight capacity of 18,000 tons, optimised for the safe carriage of petrochemicals and specialty chemicals. These vessels incorporate double-hull construction, advanced inert gas systems, and state-of-the-art cargo heating and monitoring technologies to ensure environmental compliance and operational efficiency.

The project timeline spans approximately 36 to 42 months, with deliveries scheduled progressively from late 2028 onwards. Swan Defence's modular construction techniques and skilled workforce will enable parallel builds across its dry dock and fabrication bays, minimising delays.

Financially, the $227 million order translates to roughly $37.8 million per vessel, reflecting competitive pricing without compromising on quality. This influx of foreign exchange strengthens Swan Defence's balance sheet, funding further expansions in defence shipbuilding, including frigates and offshore patrol vessels.

For Rederiet Stenersen, these tankers will expand its fleet, currently focused on short-sea and regional chemical trades in Europe and the Mediterranean. The newbuilds feature IMO Type 2 and Type 2.5 cargo tanks, enhancing versatility for products like vegetable oils, acids, and alcohols.

Swan Defence's resurgence traces back to its acquisition by Swan Energy in 2022, transforming a debt-laden yard into a diversified player in commercial and defence shipping. Recent milestones include LNG carrier conversions and ONGC rig contracts, positioning it as a key contender against global giants like South Korea's Hyundai Heavy Industries.

This deal aligns with India's Maritime India Vision 2030, which aims to elevate the country's shipbuilding capacity to 55 million DWT annually. It also counters China's dominance in the sector, showcasing Indian yards' edge in cost-effectiveness and rapid scalability.

Environmentally, the tankers will comply with the latest Energy Efficiency Design Index (EEDI) Phase 3 norms, incorporating low-emission engines and ballast water treatment systems. Ballast water management remains critical for preventing invasive species spread, a priority for Norwegian regulators.

Workforce implications are substantial, with the project expected to engage over 2,000 direct and indirect jobs at Pipavav. Skill development programmes in welding, outfitting, and digital twin modelling will upskill local talent, fostering long-term employability in Gujarat's maritime corridor.

Geopolitically, the contract signals deepening India-Norway ties, bolstered by a 2024 maritime security pact. Norway's expertise in Arctic shipping complements India's blue-water ambitions, potentially paving the way for joint ventures in green shipping technologies.

Challenges ahead include steel sourcing amid global price volatility and supply chain disruptions from Red Sea tensions. Swan Defence plans to leverage domestic suppliers like JSW Steel and SAIL, reducing import dependency under the Make in India framework.

Upon completion, these tankers will enhance Rederiet Stenersen's competitiveness in the €50 billion global chemical tanker market, projected to grow at 4.2% CAGR through 2030. Fuelled by rising demand for specialty chemicals in pharmaceuticals and renewables.

Swan Defence's order book now exceeds $1.5 billion, blending commercial and defence segments. This diversification mitigates risks from volatile oil prices and positions the yard for upcoming Indian Navy tenders.

The $227 million contract not only validates Swan Defence's technical prowess but also reinforces India's emergence as a shipbuilding powerhouse, with ripple effects across economy, employment, and strategic partnerships.

Based On ET Infra Report