India’s state-owned natural gas player GAIL has signed a long-term time charter agreement with Japanese shipping company Kawasaki Kisen Kaisha (K Line) for a new liquefied natural gas (LNG) vessel to be built by South Korea’s Samsung Heavy Industries (SHI).
The agreement was concluded through a ship-owning company established in Singapore, which also handed out a shipbuilding contract to SHI. The 290-meter-long, modern two-stroke vessel with a tank capacity of 174,000 cubic meters is scheduled to start operations in 2027.
The contract was signed by GAIL’s Executive Director of Marketing Shipping & Intl. LNG, Satyabrata Bairagi and K Line’s Managing Executive Officer of LNG, Carbon Solution Business, Satoshi Kanamori . Bairagi noted he was “proud to have all three top Japanese Shipping lines now associated with GAIL’s LNG journey.”
The Indian player currently has four LNG vessels – GAIL Bhuwan , GAIL Urja , Grace Emilia , and Maran Gas Pericles . Two additional ships are expected to join the fleet next year, including one newbuild on long-term charter. K Line’s fleet is larger, boasting 46 owned and co-owned LNG carriers as of September 30, 2024.
GAIL recently inked a deal with ADNOC , which is set to supply up to 0.52 million metric tonnes per annum (mmtpa) of LNG for ten years, starting in 2026. The gas will be supplied from ADNOC Gas’ Das Island liquefaction facility.
Meanwhile, K Line welcomed Pontus Highway , a 7,000 CEU LNG-powered car carrier, last week . Using LNG as the vessel’s main energy source is expected to reduce emissions of carbon dioxide (CO2) by 25% to 30%, and emissions of sulfur oxides (SOx) by almost 100%.