New Delhi, January 28, 2026: State owned natural gas major GAIL India Limited has taken a strategic step to strengthen India’s LNG shipping capabilities by entering into a term sheet for equity participation in a ship owning company based in Singapore. The move aligns with India’s long term energy security and shipping self reliance goals.
The proposed equity participation has been signed jointly with Kawasaki Kisen Kaisha Limited of Japan and J M Baxi Marine Services. The agreement was formalised in the presence of the Union Minister for Petroleum and Natural Gas, reinforcing the government’s focus on strengthening India’s energy logistics infrastructure.
As part of the arrangement, GAIL has signed a long term charter agreement with the ship owning company starting from 2027. The LNG vessel is currently under construction at a Korean shipyard. Subject to approval from the Department of Investment and Public Asset Management, GAIL plans to make the investment through its wholly owned subsidiary GAIL Global IFSC Limited, registered at GIFT City in Gujarat.
GAIL Chairman and Managing Director Sandeep Kumar Gupta stated that the equity participation alongside long term chartering represents a strategic alignment of interests. He highlighted that the investment will give GAIL ownership exposure in two LNG vessels in partnership with reputed Japanese companies, supporting India’s vision of self reliance in shipping and energy transportation.
The partnership is expected to enhance reliability and resilience in LNG supply chains as India continues to expand the role of natural gas in its energy mix. LNG shipping plays a critical role in ensuring access to cleaner fuel sources for power generation, industry, city gas distribution and transport, while also supporting emission reduction goals.
GAIL remains India’s leading natural gas company with a dominant presence across gas transmission, trading, LNG shipping and regasification. The company operates over 18000 kilometres of natural gas pipelines nationwide and continues to expand its infrastructure footprint. It also holds a significant global LNG portfolio, placing it among the leading LNG marketers worldwide.
The latest initiative strengthens GAIL’s position in LNG logistics and reinforces its long term strategy to support India’s transition towards a cleaner, more secure and resilient energy future.