GAIL, K Line, JM Baxi Sign LNG Shipping Equity Term Sheet
PORTS & SHIPPING

GAIL, K Line, JM Baxi Sign LNG Shipping Equity Term Sheet

GAIL (India) Limited has signed a Term Sheet with Kawasaki Kisen Kaisha (K Line) and J M Baxi Marine Services for equity participation in a ship-owning company established in Singapore. The Term Sheet was signed in the presence of Shri Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas.
Under the arrangement, GAIL has entered into a long-term charter agreement with the ship-owning company commencing from 2027. The LNG vessel is currently under construction at a Korean shipyard. Subject to approval from the Department of Investment and Public Asset Management (DIPAM), GAIL plans to make the investment through its wholly owned subsidiary, GAIL Global IFSC Limited, based in GIFT City, Gujarat.
Commenting on the development, Sandeep Kumar Gupta, Chairman and Managing Director, GAIL, said that the equity participation aligns ownership and chartering interests, while strengthening Indian participation in LNG shipping. He noted that the move supports the Government’s Aatmanirbhar Bharat vision by increasing Indian ownership of LNG carriers in partnership with reputed Japanese companies.
Satoshi Kanamori, Senior Managing Corporate Officer, K Line, stated that the partnership combines the complementary strengths of all three companies to develop a resilient and sustainable LNG shipping platform for India, backed by K Line’s operational and technical expertise.
Dhruv Kotak, J M Baxi Group, said the collaboration marks the group’s entry into clean energy transportation and reflects its long-term commitment to strengthening India’s maritime and logistics infrastructure while supporting the country’s clean-energy transition.
LNG shipping is emerging as a critical pillar of India’s energy and maritime strategy, supporting energy security, environmental sustainability and industrial growth. As India increases the share of natural gas in its energy mix, LNG shipping enables access to global gas supplies while supporting lower emissions, improved air quality and reliable fuel for power, industry and transport.

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GAIL (India) Limited has signed a Term Sheet with Kawasaki Kisen Kaisha (K Line) and J M Baxi Marine Services for equity participation in a ship-owning company established in Singapore. The Term Sheet was signed in the presence of Shri Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas.Under the arrangement, GAIL has entered into a long-term charter agreement with the ship-owning company commencing from 2027. The LNG vessel is currently under construction at a Korean shipyard. Subject to approval from the Department of Investment and Public Asset Management (DIPAM), GAIL plans to make the investment through its wholly owned subsidiary, GAIL Global IFSC Limited, based in GIFT City, Gujarat.Commenting on the development, Sandeep Kumar Gupta, Chairman and Managing Director, GAIL, said that the equity participation aligns ownership and chartering interests, while strengthening Indian participation in LNG shipping. He noted that the move supports the Government’s Aatmanirbhar Bharat vision by increasing Indian ownership of LNG carriers in partnership with reputed Japanese companies.Satoshi Kanamori, Senior Managing Corporate Officer, K Line, stated that the partnership combines the complementary strengths of all three companies to develop a resilient and sustainable LNG shipping platform for India, backed by K Line’s operational and technical expertise.Dhruv Kotak, J M Baxi Group, said the collaboration marks the group’s entry into clean energy transportation and reflects its long-term commitment to strengthening India’s maritime and logistics infrastructure while supporting the country’s clean-energy transition.LNG shipping is emerging as a critical pillar of India’s energy and maritime strategy, supporting energy security, environmental sustainability and industrial growth. As India increases the share of natural gas in its energy mix, LNG shipping enables access to global gas supplies while supporting lower emissions, improved air quality and reliable fuel for power, industry and transport.

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