GAIL signs long-term contract with “K” LINE for LNG ship

New Delhi: GAIL (India) Limited today signed a long-term time charter contract with Kawasaki Kisen Kaisha, Ltd. (“K” LINE) through the ship-owning company established in Singapore for a new-built LNG ship to expand its fleet of LNG carriers. “K” LINE has expertise of 40 years in LNG transportation.

The LNG ship will be a modern two-stroke vessel having a tank capacity of 1,74,000 cubic metres and will be built by Samsung Heavy Industries Co. Ltd., Korea with which Ship Owning Company has concluded a shipbuilding contract.

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The contract was signed in the presence of Mr R K Jain, GAIL Director (Finance), Mr Sanjay Kumar, GAIL Director (Marketing) and Mr R K Singhal, GAIL Director (Business Development) by Mr S Bairagi, GAIL Executive Director (Mktg.-Shipping & Intl. LNG) and Mr Satoshi Kanamori, Managing Executive Officer (LNG, Carbon Solution Business), “K” LINE.

This is the first long-term time charter contract between GAIL and “K” LINE involving a newly built vessel which is expected to be engaged in transportation of Liquified Natural Gas (LNG) for GAIL in 2027.

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GAIL currently has four LNG vessels, GAIL Bhuwan, GAIL Urja, Grace Emilia and Maran Gas Pericles, to transport natural gas in a super cooled form. Two more ships are expected to join the fleet next year including one newbuilt vessel on long-term charter.

GAIL has a diversified sourcing portfolio for over 15 MMTPA which includes supply sources from various geographies both on FOB and DES basis. The company’s LNG fleet is deployed to lift volumes contracted on an FOB basis primarily from the North American region and is transported to meet the domestic demand as well as international customers.

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