Japanese shipping company Mitsui O.S.K. Lines (MOL) has signed a time charter agreement with GAIL, India’s largest gas utility and gas supply company, for a liquefied natural gas (LNG) carrier newbuild.
As disclosed, the new vessel will be the second MOL Group LNG carrier serving GAIL; the parties signed a contract for the first vessel in 2019.
The vessel measures 294.9 meters in length and 46.4 meters in breadth. The 174,000 cbm ship is being built by South Korean shipyard Daewoo Shipbuilding & Marine Engineering Co. (DSME). The charter period will start from 2023.
Furthermore, the partners signed a joint ownership for an existing LNG carrier. The current vessel has been chartered to GAIL through a wholly-owned MOL subsidiary since 2021. At this time, MOL and GAIL reached an agreement to share the ship by transferring a portion of a wholly-owned MOL subsidiary’s shares to GAIL.
GAIL is constantly expanding its global presence through its participation in projects/ventures along the natural gas value chain. The company has a global LNG portfolio of around 14 MMTPA, and is actively involved in the LNG trading business in the international market.
“By strengthening MOL and GAIL’s partnership, there will be synergies that will make us provide more reliable services, and this will lead us to extend our services even further against the demand that will grow in the future,” according to the companies.
Meanwhile, MOL plans to strengthen its presence and business base in India, where energy demand is expected to increase. It will continue to work proactively to provide LNG transport services.