New Delhi: State-owned GAIL (India) Limited has signed a term sheet with Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and JM Baxi Marine Services for equity participation in a ship-owning company to be established in Singapore, marking a significant step towards strengthening India’s LNG shipping capabilities.
The term sheet was signed in the presence of Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri.
Under the arrangement, GAIL has entered into a long-term charter agreement with the proposed ship-owning company, with the charter set to commence from 2027. The LNG vessel 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 routed through its wholly owned subsidiary, GAIL Global IFSC Limited, registered at GIFT City, Gujarat.
Commenting on the development, GAIL's Chairman & Managing Director (CMD) Sandeep Kumar Gupta 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, in line with the Government’s vision of “Aatmanirbhar Bharat” in the shipping sector.
Highlighting the strategic importance of the partnership, Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, said the collaboration brings together the complementary strengths of the three companies to build a resilient and sustainable LNG shipping platform for India, supported by “K” LINE’s safety culture, technical expertise and operational excellence.
Dhruv Kotak of the J M Baxi Group said the group’s entry into clean energy transportation represents a defining milestone in its long-term vision for India’s maritime and logistics infrastructure. He added that the partnership aligns with the Prime Minister’s Aatmanirbhar Bharat vision and supports the development of resilient and sustainable supply chains essential for India’s clean energy transition.
LNG shipping is emerging as a critical pillar of India’s energy and maritime strategy as the country seeks to increase the share of natural gas in its energy mix. By enabling access to global gas markets and efficient delivery to domestic consumers, LNG shipping supports India’s goals of energy security, environmental sustainability and industrial growth, while contributing to the transition towards a cleaner and more resilient energy future.
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