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 Singapore-based ship-owning company, marking a strategic step in India’s LNG shipping capabilities. The signing ceremony was held in the presence of Hardeep Singh Puri, Minister for Petroleum and Natural Gas, Government of India.
Under the agreement, GAIL has also signed a long-term charter with the ship-owning company, starting from 2027. The LNG vessel is currently under construction at a Korean shipyard. GAIL’s equity investment, subject to approval from DIPAM, will be routed through its wholly owned subsidiary, GAIL Global IFSC Limited, registered in GIFT City, Gujarat.
Chairman & Managing Director, GAIL, Sandeep Kumar Gupta, described the investment as a strategic alignment of interests, enabling GAIL to hold ownership in two LNG ships while also serving as a charterer. “This initiative strengthens India’s energy logistics and enhances resilience in LNG transportation,” he said.
Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, highlighted the partnership’s focus on combining global safety standards, technical expertise, and operational excellence to ensure reliable energy delivery. Dhruv Kotak, J M Baxi Group, noted that the collaboration reflects the commitment to Aatmanirbhar Bharat and supports sustainable supply chains for India’s clean-energy transition.
This tripartite collaboration brings together complementary strengths to build a robust, sustainable LNG shipping platform, contributing to India’s energy security and supporting the nation’s low-carbon transition.
