Gail (India) has signed a long-term time charter with K Line’s Singapore arm for an LNG carrier newbuilding ordered by the Japanese owner in the first deal between the two companies.
The 174,000-cbm LNG newbuilding, which is on order at Samsung Heavy Industries, is due to deliver to Gail in 2027 under a charter that will run through until 2038.
TradeWinds reported in late October that K Line contracted an LNG newbuilding with the yard priced at $259m.
Gail originally tendered for an LNG carrier to take on charter for a minimum of seven years with the option to extend the hire to the end of 2038. It has floated the option of taking up to a 26% equity stake in the ship.
This is the third term-deal concluded by gas buyer Gail on LNG shipping in six months.
In May, Gail signed with Cool Company to take one of its two LNG newbuildings on hire for 14 years. The 174,000-cbm vessel, previously under construction as the Kool Panther but now named the Gail Sagar, is due to deliver to the Indian importer in early 2025.
Just over three months later, the company also inked a deal to take the 175,069-cbm Maran Gas Pericles (built 2016), a Shell relet, for up to three years.
This vessel has already been delivered to Gail giving and the company now has four LNG carriers.
The other three are two Mitsui OSK Lines vessels the 180,000-cbm Gail Bhuwan (built 2021) and 174,000-cbm Gail Urja (built 2023), and NYK’s 174,000-cbm Grace Emilia (built 2021).
Next year, Gail will take delivery of the Gail Sagar and another, as yet unknown vessel, which has been fixed on a multi-month deal.
Gail is not only expanding its LNG carrier fleet but also its trading capabilities.
The company boasts an LNG supply portfolio of over 15 mpta, comprising both free-on-board (FOB) and ex-ship volumes.
But it frequently optimises shipments, selling its US-produced cargoes and buying
Gail said its LNG fleet is deployed to lift volumes contracted on FOB basis, primarily from North America, which is transported to meet domestic demand as well as international customers.
