GAIL (India) Limited, Kawasaki Kisen Kaisha, Ltd (“K” LINE) and J M Baxi Marine Services have signed a term sheet for equity participation in a ship-owning company established in Singapore. The term sheet was signed in the presence of Hardeep Singh Puri, Hon’ble Minister for Petroleum and Natural Gas, Government of India.
Under the proposed arrangement, GAIL will invest in the ship-owning company through its wholly owned subsidiary, GAIL Global IFSC Limited, registered in GIFT City, Gujarat. The investment is subject to approval from DIPAM. Alongside the equity participation, GAIL has also entered into a long-term charter agreement with the ship-owning company, with operations scheduled to begin from 2027. The LNG vessel for this partnership is currently under construction at a shipyard in Korea.
Sandeep Kumar Gupta, Chairman and Managing Director of GAIL, said that the move reflects a planned approach to align long-term shipping availability with India’s expanding LNG requirements. He noted that equity ownership in a shipping company, while also being the charterer, ensures closer alignment of operational and commercial interests. He added that this investment will give GAIL ownership participation in two LNG vessels through partnerships with established Japanese companies and supports the national objective of expanding Indian ownership in critical maritime assets in line with the Hon’ble Prime Minister’s vision of “Aatmanirbhar Bharat” in the shipping sector.
Satoshi Kanamori, Senior Managing Corporate Officer at “K” LINE, said the partnership brings together three highly trusted companies with complementary strengths to develop a reliable and future-ready LNG shipping platform supporting India’s long-term energy needs. He added that “K” LINE will contribute its established safety practices, technical capability and operational strength to ensure consistent and dependable transportation, while creating long-term value for stakeholders.
Dhruv Kotak of J M Baxi Group stated that the partnership represents an important step in the group’s long-term roadmap for strengthening India’s maritime and logistics infrastructure, particularly in the clean energy segment. He said that working alongside GAIL and long-standing collaborator “K” LINE reinforces J M Baxi’s commitment to resilient supply chains that support India’s clean energy transition and reflects the belief that growth must be supported by responsible practices and environmental focus.
LNG shipping is becoming increasingly important to India’s energy and maritime direction, supporting national priorities related to energy security, sustainability and industrial expansion. As India works to raise the share of natural gas in the energy mix, LNG shipping ensures stable access to global supply sources and efficient delivery to Indian ports, enabling cleaner fuel adoption across power generation, industry, city-gas networks and transport.
GAIL, headquartered in New Delhi, is India’s leading natural gas company with diversified presence across the gas value chain and a pipeline network of over 18,001 km. “K” LINE, founded in 1919, operates a global fleet of around 450 vessels including 47 LNG ships. J M Baxi Marine Services is a key Indian marine services partner and part of the 109-year-old J M Baxi Group, with operations spanning ports, logistics and integrated maritime services.
