GAIL and “K” LINE agree to a long-term charter agreement for an LNG ship

Through the Singapore-based ship-owning business, GAIL (India) Limited and Kawasaki Kisen Kaisha, Ltd. (K LINE) inked a long-term charter agreement for a new LNG vessel. “K” LINE has 40 years of experience transporting LNG.

With a tank capacity of 1,744,000 cubic meters, the LNG ship will be a contemporary two-stroke vessel constructed by Samsung Heavy Industries Co. Ltd. in Korea, with whom the Ship Owning Company has entered into a shipbuilding agreement.

This is the first long-term charter agreement between GAIL and “K” LINE pertaining to a recently constructed vessel that is anticipated to transport LNG for GAIL starting in 2027. To carry natural gas in a super-cooled form, GAIL currently operates four LNG vessels: GAIL Bhuwan, GAIL Urja, Grace Emilia, and Maran Gas Pericles. Next year, two more ships—including a newly constructed ship under long-term charter—are anticipated to join the fleet.

For more than 15 MMTPA, GAIL has a diverse sourcing portfolio that comprises both FOB and DES supply sources from different regions. The company’s LNG fleet is used to deliver goods to both domestic and foreign clients, mostly from the North American region, and to lift volumes contracted on a FOB basis.