GAIL Strengthens Global LNG Fleet with Long-Term Charter for New Vessel

30 Nov 2024 , 07:26 PM

GAIL (India) Ltd has entered into a long-term chartering contract with Kawasaki Kisen Kaisha Ltd (“K” LINE) for a newly built LNG ship. The tie-up is a part of GAIL’s plan to improve its LNG transportation capabilities and enhance its global footprint.

The contract is through a Singapore-based ship-owning company, which underlines GAIL’s focus on international collaboration. The LNG carrier will be built in a modern two-stroke engine design with 1,74,000 cubic meter tank capacity for efficient and reliable operations. The ship is under construction by Samsung Heavy Industries Co Ltd in Korea and will likely enter operation in 2027.

This is the first time charter for long-term service between GAIL and “K” LINE, a group that has successfully operated its LNG business for over four decades.

GAIL currently operates a fleet of four vessels-LNG Bhuwan, LNG Urja, Grace Emilia, and Maran Gas Pericles. Two more ships are scheduled to be added in 2024-the new ship under long-term charter and another one. GAIL has a diversified LNG sourcing portfolio of over 15 MMTPA, which is sourced on Free on Board (FOB) and Delivered Ex-Ship (DES) basis from various global regions.

The company’s LNG carriers mainly service North American FOB volumes, thus ensuring a steady supply to domestic markets and international customers. This move further strengthens GAIL’s commitment to having a strong and efficient LNG supply chain while moving ahead with its global growth plans.