GAIL (India) Limited, Kawasaki Kisen Kaisha, Ltd (“K” LINE) and J M Baxi Marine Services have signed a term sheet for equity participation in a ship-owning company established in Singapore. The term sheet was signed in the presence of Hardeep Singh Puri, Hon’ble Minister for Petroleum and Natural Gas, Government of India.
Under the proposed arrangement, GAIL will invest in the ship-owning company through its wholly owned subsidiary, GAIL Global IFSC Limited, registered in GIFT City, Gujarat. The investment is subject to approval from DIPAM. Alongside the equity participation, GAIL has also entered into a long-term charter agreement with the ship-owning company, with operations scheduled to begin from 2027. The LNG vessel for this partnership is currently under construction at a shipyard in Korea.
Sandeep Kumar Gupta, Chairman and Managing Director of GAIL, said that the move reflects a planned approach to align long-term shipping availability with India’s expanding LNG requirements. He noted that equity ownership in a shipping company, while also being the charterer, ensures closer alignment of operational and commercial interests. He added that this investment will give GAIL ownership participation in two LNG vessels through partnerships with established Japanese companies and supports the national objective of expanding Indian ownership in critical maritime assets in line with the Hon’ble Prime Minister’s vision of “Aatmanirbhar Bharat” in the shipping sector.