Japanese shipping giant and India’s gas player seal LNG vessel deal

January 28, 2026, by Melisa Cavcic

LNG Japonica Shipping Corporation, a joint venture between Japan’s shipping giant Mitsui O.S.K. Lines (MOL) (74%) and India’s state-owned energy firm Gail (26%), has struck a long-term charter deal for a liquefied natural gas (LNG) carrier (LNGC) with Gail, which is primarily focused on natural gas.

The charter agreement covering the Gail Bhuwan LNG carrier was signed on January 27, 2026, between Hisashi Umemura, Senior Managing Executive Officer, Director General, Headquarters of Energy Business at MOL, and Shri. S Bairagi, Executive Director (International Shipping & LNG) at Gail, in the presence of CMD, Gail, and other functional directors of the state-owned company, along with dignitaries from MOL.

The two players share a long-standing business partnership; thus, this collaboration further strengthens cooperation in LNG shipping and energy logistics. The agreement is perceived to mark an important milestone under the ‘Maritime Amrit Kaal Vision 2047,‘ reinforcing India’s maritime and energy supply chain capabilities.

As both companies have set ambitious net-zero emission targets, the latest deal is expected to contribute to the realization of a low-carbon and decarbonized world. MOL has positioned regional strategy as one of the key pillars of its group management plan, ‘Blue Action 2035,’ identifying Asia as a region expected to deliver strong economic growth.

The Japanese firm explained: “Through the expansion of its energy business, including this project, and further strengthening of its partnership with Gail, MOL group will continue to play a part in the transport and logistics infrastructure that supports rapidly growing demand for energy, including natural gas, and contributing to stable energy supply.”

Gail, which owns and operates a network of over 18,001 kilometers of natural gas pipelines spread across India, has built the largest LNG fleet in the country, strengthening its maritime capabilities and ensuring uninterrupted LNG availability to meet the growing domestic demand.

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This LNG carrier deal comes a month after MOL revealed a finance agreement for a floating storage and regasification unit (FSRU) destined for deployment in Singapore.