New Delhi: GAIL (India) Limited, the country’s leading natural gas company, has signed a Term Sheet for equity participation in a Singapore-based ship-owning company along with Kawasaki Kisen Kaisha, Ltd. (“K” LINE) of Japan and J M Baxi Marine Services. The term sheet was signed in the presence of Shri Hardeep Singh Puri, Hon’ble Union Minister for Petroleum and Natural Gas, Government of India.
As part of the arrangement, GAIL has entered into a long-term charter agreement with the ship-owning company beginning 2027. The LNG vessel covered under the agreement is currently under construction at a Korean shipyard.
GAIL’s proposed equity investment in the ship-owning company, subject to approval from the Department of Investment and Public Asset Management (DIPAM), will be made through its wholly owned subsidiary GAIL Global IFSC Limited, which is registered at GIFT City, Gujarat.
Speaking on the development, Shri Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, said that acquiring equity in a shipping company while also acting as a charterer represents a strategic alignment of interests. He noted that with this investment, GAIL will have ownership stakes in two LNG vessels, in partnership with reputed Japanese companies, strengthening its global LNG shipping footprint.
Commenting on the partnership, Mr. Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, stated that the collaboration brings together the complementary strengths of three trusted organisations to build a resilient and sustainable LNG shipping platform for India. He added that “K” LINE will continue to contribute global safety standards, technical expertise, and operational excellence to support reliable energy delivery.
Mr. Dhruv Kotak of the J M Baxi Group highlighted that the group’s entry into clean energy transportation marks a defining step in its long-term vision for Indian maritime and logistics infrastructure. He said the partnership with GAIL and “K” LINE aligns with the Hon’ble Prime Minister’s vision of Aatmanirbhar Bharat and supports the development of resilient and sustainable supply chains for India’s clean-energy transition.