GAIL, K LINE & J M Baxi collaborate to own equity in shipping firm

NEW DELHI : GAIL (India) said on Wednesday that along with Kawasaki Kisen Kaisha (K LINE) and J M Baxi Marine Services, the state-run firm has signed a term sheet for equity participation in the ship-owning company established in Singapore.

The term sheet was signed in the presence of Oil Minister Shri Singh Puri at the India Energy Week in Goa. GAIL has signed a long-term charter with the ship-owning company starting from 2027. The LNG vessel is currently under construction in a Korean Shipyard.

The gas utility’s investment in the ship-owning company, subject to approval of DIPAM, is planned through its wholly owned subsidiary company—GAIL Global IFSC, which is registered in GIFT City, Gujarat.

Sandeep Kumar Gupta, Chairman & Managing Director of 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, he added.

Satoshi Kanamori, Senior Managing Corporate Officer at 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 from the 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 Aatmanirbhar Bharat.”

On the sidelines of the IEW, GAIL and Mitsui O.S.K. Lines on Tuesday entered into a long-term charter agreement for an LNG carrier, “GAIL BHUWAN”.

GAIL and MOL share a long-standing business partnership, and this collaboration further strengthens cooperation in LNG shipping and energy logistics.

Relying on MOL’s proven track record in providing reliable transportation services—including its high standards of safety and quality—and strong partnership, this contract has been signed between GAIL and LNG Japonica Shipping Corporation, a Joint Venture of GAIL (26 per cent) and MOL (74 per cent).

Both GAIL (India) Limited and MOL have set ambitious net-zero emission targets, and this agreement contributes to the realisation of a low- and decarbonised society.

Liquefied Natural Gas (LNG) shipping is fast becoming a cornerstone of India’s energy and maritime strategy, underpinning national goals for energy security, economic resilience, environmental sustainability, and industrial growth.

As India works to expand the share of natural gas in its energy mix and transition toward cleaner fuels, LNG shipping enables the nation to source reliable energy supplies from global markets and deliver them efficiently to Indian ports and consumers.

With its cleaner-burning profile, LNG supports India’s commitments to reduce carbon emissions and improve air quality while fuelling power generation, industrial processes, city-gas distribution networks, and heavy transport.

As India accelerates its journey toward a cleaner, more secure, and resilient energy future, LNG shipping will remain a cornerstone of national energy strategy.