Mumbai: State-owned GAIL (India) Ltd, India’s biggest natural gas utility, said on Wednesday it will take an equity stake in a Singapore-based LNG ship-owning company, its second in the six LNG carriers hired to transport the fuel.
The ‘Maharatna’ PSU did not disclose the size of the stake and the investment.
GAIL has signed a long-term charter with the ship-owning company for the LNG vessel currently under construction in South Korea. The equity will be acquired through its wholly owned subsidiary – GAIL Global IFSC Ltd – registered in the Gujarat International Finance Tec-City (GIFT City), a special economic zone located in Gujarat.
“Taking equity in a shipping company while also serving as a charterer is a strategic alignment of interests,” Sandeep Kumar Gupta, Chairman and Managing Director, GAIL, said in a statement.
“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 Hon’ble Prime Minister’s vision of ‘Aatmanirbhar Bharat’ in the shipping sector,” Gupta added.
Kawasaki Kisen Kaisha, Ltd. (K LINE) and J M Baxi Marine Services will also be equity partners in the ship owning company.
GAIL holds a 26 per cent stake in ‘GAIL Bhuwan’, an LNG carrier it has hired from Japan’s Mitsui O.S.K. Lines, Ltd.
GAIL has a significantly large portfolio and is among the top 10 global LNG portfolio marketeers.
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, GAIL said in the statement.
With its cleaner-burning profile, LNG supports India’s commitments to reduce carbon emissions and improve air quality while powering 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,” GAIL added.
