GAIL, “K” LINE, and J M Baxi Marine Services have signed a Term Sheet for equity participation in a Singapore-based ship-owning company. GAIL will charter vessels from this company and plans its investment through its subsidiary, GAIL Global IFSC Limited. This collaboration aims to build a resilient and sustainable LNG shipping platform, aligning with India’s energy security and environmental goals.
Strategic Partnership for LNG Shipping
GAIL (India) Limited, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and J M Baxi Marine Services have formalized a Term Sheet to acquire equity stake in a ship-owning company established in Singapore. The signing took place in the presence of the Minister for Petroleum and Natural Gas on January 28, 2026.
GAIL’s Role and Investment
GAIL has committed to a long-term charter agreement with the newly formed ship-owning company, commencing in 2027. The LNG vessel is currently under construction in a Korean Shipyard. GAIL plans to make the equity investment through GAIL Global IFSC Limited, its wholly owned subsidiary, subject to necessary approvals.
Industry Impact and Vision
This collaboration aligns with the vision of “Aatmanirbhar Bharat” in the shipping sector, aiming to increase ownership of ships by Indian Companies. The partnership is expected to contribute to a resilient and sustainable LNG shipping platform, supporting India’s clean energy transition and energy security.
Statements from Leadership
Shri Sandeep Kumar Gupta, Chairman & Managing Director, GAIL, stated that this move represents a strategic alignment of interests, providing GAIL with ownership in LNG ships alongside reputed Japanese Companies.
Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, emphasized the complementary strengths of the three companies in building a sustainable LNG shipping platform for India.
Dhruv Kotak, J M Baxi Group, highlighted that this entry into clean energy transportation marks a defining step for the group and reinforces their commitment to building resilient supply chains.
Source: BSE
