New Delhi: GAIL (India) Ltd, a state-owned gas utility, has contracted a liquefied natural gas (LNG) carrier from the NYSE-listed 'Cool' or 14 years to supplement its transportation capacity to meet India's expanding gas needs.
The time charter for the LNG carrier will commence in early 2025 and GAIL will have the option to extend the charter by two additional years beyond the firm fourteen-year period. This contract, specifically for a newly-built LNG carrier, is a significant boost to GAIL's existing fleet of four LNG carriers.
The LNG tanker will be used to ferry extra super-chilled fuel from the United States, where the company has signed a contract to purchase 2.5 million tonnes per annum (MTPA) of LNG from Sabine Pass Liquefaction LLC commencing in February 2018. Additionally, It has also booked 2.3 MTPA of capacity at the Cove Point LNG liquefaction project in the US.
Last year, GAIL hired an LNG carrier from Mitsui OSK Lines, a Japanese shipping business. This was the second MOL Group LNG vessel to service GAIL. The first vessel, called GAIL Bhuwan, was chartered in 2021. The second vessel, taken in December 2023, was called GAIL Urja. GAIL has a global LNG portfolio of around 14 MTPA and uses ships to bring that gas to India.
in response to the time charter agreement with CoolCo, S Bairagi, Executive Director (Marketing Shipping & International LNG) at GAIL, emphasized the company's eagerness to acquire the LNG carrier. Meanwhile, Richard Tyrrell, CEO of CoolCo, highlighted the advanced technology and exceptional economic and environmental performance of the newbuild LNG carrier. Tyrrell emphasized that this partnership reinforces GAIL's capability to transport clean-burning LNG efficiently and cost-effectively for years.
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