Japan’s Mitsui O.S.K. Lines (MOL) has entered into a short-term charter agreement with India’s GAIL for a liquefied natural gas (LNG) carrier.
The Japanese shipowner’s deal with GAIL is significant for the company as it is seeking to strengthen its foothold in India.
MOL did not reveal which carrier was chartered out, saying only that the contract would be managed through one of its wholly-owned subsidiaries.
“It is expected that demand for gas will be increasing continuously in India, registering significant economic growth. MOL is currently participating in not only transportation of LNG but also the projects in India of floating LNG receiving terminal and Ethane transportation by the first very large ethane carrier (VLEC) in the world,” the company said in a statement.
GAIL is the largest natural gas company in India and currently holds an LNG/RLNG portfolio of about 14 mtpa from various long and short-term contracts. The company is also committed to LNG trading globally.