New Delhi: In a significant move strengthening India's maritime and energy infrastructure, state-owned gas utility GAIL (India) Limited and Japanese shipping major Mitsui O.S.K. Lines Ltd (MOL) have entered into a long-term charter agreement for an LNG carrier named "GAIL BHUWAN".
The agreement was signed on Tuesday during the India Energy Week 2026 in Goa, marking a strategic enhancement of India's liquefied natural gas (LNG) shipping capabilities.
Partnership and Signing Ceremony
The contract was signed by Shri. S. Bairagi, Executive Director (International Shipping & LNG) of GAIL, and Mr. Hisashi Umemura, Director General, Headquarters of Energy Business at MOL. The ceremony was attended by GAIL's Chairman and Managing Director, functional directors, and senior dignitaries from MOL.
This charter reinforces the long-standing business partnership between GAIL and MOL, focusing on cooperation in LNG shipping and energy logistics.
Key Details of the Agreement
The contract was signed with LNG Japonica Shipping Corporation Limited, a Joint Venture in which GAIL holds a 26% stake and MOL holds 74%. GAIL officials cited MOL's proven track record in reliable transportation, safety, and quality standards as key factors behind the partnership.
Strategic Importance
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Boosting Maritime & Energy Capabilities: The agreement is aligned with India's 'Maritime Amrit Kaal Vision 2047', aimed at strengthening the country's maritime infrastructure and energy supply chain resilience.
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Sustainability Goals: Both GAIL and MOL have committed to ambitious net-zero emission targets. This partnership is positioned as a step towards realizing a low-carbon and decarbonized society.
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Energy Security: The move supports GAIL's strategy of logistics integration, helping ensure uninterrupted LNG availability to meet India's growing domestic natural gas demand.
Company Profiles
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GAIL (India) Limited: A Maharatna PSU, GAIL is India's leading natural gas company with interests across the gas value chain. It operates over 18,000 km of natural gas pipelines and is among the top global LNG portfolio marketers. The company is building the largest LNG fleet in the country as part of its logistics integration strategy.
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Mitsui O.S.K. Lines (MOL): The Japanese giant has identified Asia, particularly India, as a key growth region under its management plan "BLUE ACTION 2035." MOL aims to strengthen its energy business and partnership with GAIL to support the growing demand for energy, including natural gas, and contribute to stable energy supply in the region.
Industry Perspective: "This long-term charter between GAIL and MOL is a strategic fit. It secures reliable LNG shipping capacity for India's growing imports while leveraging Japanese expertise in safe and efficient maritime logistics. It directly supports India's goals of enhancing energy security and developing a world-class maritime sector," said an energy sector analyst.
What's Next: The "GAIL BHUWAN" LNG carrier will join GAIL's expanding fleet, further solidifying the company's ability to secure and transport LNG under long-term arrangements, reducing volatility in global shipping markets.
The agreement underscores deepening Indo-Japanese collaboration in the critical energy and infrastructure sectors.