GAIL (India) Limited, the country’s leading natural gas company, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and J M Baxi Marine Services have signed a Term Sheet for equity participation in the ship-owning
company established in Singapore. The term sheet was signed in the presence of Hardeep Singh Puri, Minister for Petroleum and Natural Gas, Government of India.
GAIL has signed a long-term charter with the ship-owning company starting from 2027. The LNG vessel is currently under construction in Korean Shipyard. GAIL’s investment in the ship-owning company, subject to approval of DIPAM, is planned through its wholly owned subsidiary company - GAIL Global IFSC Limited, which is registered in GIFT City, Gujarat.
Speaking on the occasion, Sandeep Kumar Gupta, Chairman & Managing Director, GAIL said, “Taking equity in a shipping company while also serving as a charterer is a strategic alignment of interests. With this equity investment, GAIL will be having ownership in two LNG ships in partnership with reputed Japanese Companies. Increasing ownership of ships by Indian Companies is a move towards achieving Prime Minister’s vision of “Aatmanirbhar Bharat” in the shipping sector.”
On the establishment of the partnership, Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE said “This partnership brings together the complementary strengths of three trusted companies to build a resilient and sustainable LNG shipping platform for India. “K” LINE will continue to contribute our safety culture, technical expertise, and operational excellence to support reliable energy delivery and long‑term value for all stakeholders.”
Dhruv Kotak, J M Baxi Group said, “Our entry into clean energy transportation marks a defining step in J M Baxi Group’s long-term vision for the future of Indian maritime and logistics infrastructure. Partnering with GAIL and our long-standing collaborator, “K” LINE, reinforces our commitment to the Prime Minister’s vision of Aatmanirbhar Bharat and to building resilient, sustainable supply chains that support India’s clean-energy transition. This initiative reflects our belief that responsible growth and environmental stewardship must go hand in hand as we shape the next chapter of global trade.”
