GAIL India Limited has taken a significant step toward expanding its LNG carrier fleet by signing a long-term time charter contract with Kawasaki Kisen Kaisha, Ltd. (“K” LINE).
The agreement, executed through a ship-owning company based in Singapore, involves a new-built LNG vessel that will cater to GAIL’s growing transportation needs. “K” LINE brings over 40 years of expertise in LNG transportation to this partnership.
Modern Vessel Designed for Efficiency
The new LNG ship, with a tank capacity of 1,74,000 cubic metres, will be a state-of-the-art two-stroke vessel.
Samsung Heavy Industries Co. Ltd., Korea, will construct the ship under a contract with the ship-owning company. This advanced vessel aligns with GAIL’s commitment to modernizing its fleet.
Contract Finalized in High-Level Ceremony
The agreement was finalized in the presence of key GAIL executives, including R K Jain, Director (Finance), Sanjay Kumar, Director (Marketing), and R K Singhal, Director (Business Development).
S Bairagi, GAIL’s Executive Director (Marketing-Shipping and International LNG), and Satoshi Kanamori, Managing Executive Officer (LNG, Carbon Solution Business) of “K” LINE, signed the contract.
First Long-Term Charter
The partnership marks GAIL’s first long-term time charter involving a newly built LNG vessel. The ship is expected to begin operations in 2027, enhancing GAIL’s capacity to transport Liquified Natural Gas (LNG) efficiently.
Fleet Expansion Plans on Track
GAIL currently operates four LNG vessels: GAIL Bhuwan, GAIL Urja, Grace Emilia, and Maran Gas Pericles.
By next year, the fleet will grow with the addition of two more ships, including another new-built vessel secured under a long-term charter.
Meeting Global LNG Demand
GAIL India manages a diversified LNG sourcing portfolio of over 15 MMTPA, drawing supplies from multiple geographies on both FOB and DES bases.
The company’s fleet primarily lifts volumes contracted on an FOB basis from North America. It ensures timely delivery to both domestic and international markets.
As reported by euro-petrole.com, the strategic expansion underscores GAIL’s commitment to meeting growing energy demands. It also strengthens its presence in the global LNG transportation industry.
