By: ICN Bureau
Last updated : January 30, 2026 7:24 am
The agreement includes a long-term charter for an LNG vessel, currently under construction at a Korean shipyard, set to begin operations in 2027
GAIL (India) Limited, the country’s leading natural gas company, has teamed up with Japanese shipping giant Kawasaki Kisen Kaisha (“K” LINE) and Indian maritime powerhouse JM Baxi Marine Services in a major equity partnership in a Singapore-based ship-owning company.
The term sheet was signed in the presence of Hardeep Singh Puri, Minister for Petroleum and Natural Gas.
The agreement includes a long-term charter for an LNG vessel, currently under construction at a Korean shipyard, set to begin operations in 2027. GAIL’s planned equity investment, subject to DIPAM approval, will be made through its wholly owned subsidiary, GAIL Global IFSC Limited, registered in GIFT City, Gujarat.
“Taking equity in a shipping company while also serving as a charterer is a strategic alignment of interests. With this equity investment, GAIL will be having ownership in two LNG ships in partnership with reputed Japanese Companies. Increasing ownership of ships by Indian Companies is a move towards achieving Hon’ble Prime Minister’s vision of ‘Aatmanirbhar Bharat’ in the shipping sector,” said Sandeep Kumar Gupta, Chairman & Managing Director, GAIL.
Highlighting the partnership’s strengths, Satoshi Kanamori, Senior Managing Corporate Officer, “K” LINE, said, “This partnership brings together the complementary strengths of three trusted companies to build a resilient and sustainable LNG shipping platform for India. ‘K’ LINE will continue to contribute our safety culture, technical expertise, and operational excellence to support reliable energy delivery and long term value for all stakeholders.”
Dhruv Kotak, JM Baxi Group, added, “Our entry into clean energy transportation marks a defining step in J M Baxi Group’s long-term vision for the future of Indian maritime and logistics infrastructure. Partnering with GAIL and our long-standing collaborator, ‘K’ LINE, reinforces our commitment to the Hon’ble Prime Minister’s vision of Aatmanirbhar Bharat and to building resilient, sustainable supply chains that support India’s clean-energy transition. This initiative reflects our belief that responsible growth and environmental stewardship must go hand in hand as we shape the next chapter of global trade.”
The move comes as LNG shipping becomes central to India’s energy strategy, supporting cleaner fuel adoption, energy security, and economic resilience. As India increases the share of natural gas in its energy mix, LNG shipping ensures reliable delivery from global markets to Indian ports, fueling power generation, industrial processes, city-gas networks, and heavy transport, all while supporting the country’s carbon reduction goals.