New Delhi: GAIL (India) Limited, the country’s leading natural gas company, has signed a Term Sheet for equity participation in a Singapore-based ship-owning company along with Kawasaki Kisen Kaisha, Ltd. (“K” LINE) of Japan and J M Baxi Marine Services. The signing took place in the presence of Mr. Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, Government of India.
Under the agreement, GAIL has also secured a long-term charter for LNG vessels starting from 2027, with the first vessel currently under construction at a Korean shipyard.
Investment Through GIFT City Subsidiary
GAIL’s proposed equity investment in the Singapore-based ship-owning company will be made through its wholly owned subsidiary, GAIL Global IFSC Limited, registered at GIFT City, Gujarat, subject to approval from the Department of Investment and Public Asset Management (DIPAM).
Mr. Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, stated, “Taking equity in a shipping company while also serving as a charterer is a strategic alignment of interests. With this investment, GAIL will have ownership in two LNG ships in partnership with reputed Japanese companies. Increasing Indian ownership of ships aligns with the Hon’ble Prime Minister’s vision of ‘Aatmanirbhar Bharat’ in the shipping sector.”
Industry Experts Applaud the Collaboration
Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, said, “This partnership combines the strengths of three trusted companies to build a resilient and sustainable LNG shipping platform for India. ‘K’ LINE will continue to contribute global safety culture, technical expertise, and operational excellence for reliable energy delivery and long-term value for all stakeholders.”
Dhruv Kotak, J M Baxi Group, added, “Our entry into clean energy transportation marks a defining step in our long-term vision for India’s maritime and logistics infrastructure. Partnering with GAIL and ‘K’ LINE reinforces our commitment to Aatmanirbhar Bharat and to building resilient, sustainable supply chains supporting India’s clean-energy transition.”
About GAIL
GAIL (India) Limited, a Navratna PSU under the Ministry of Petroleum and Natural Gas, is India’s largest natural gas processing and distribution company. It operates across the entire natural gas value chain, including exploration, transmission, marketing, and LNG import and shipping. GAIL is also actively expanding its global footprint and investing in clean energy solutions in line with national energy security and sustainability goals.
