Japan’s shipping giant MOL has signed a new deal to charter one liquefied natural gas (LNG) carrier to India’s largest gas utility GAIL.
Last year, GAIL started using a newbuild LNG carrier it chartered from MOL to ship its US contracted volumes to India.
South Korea’s DSME built the 180,000-cbm GAIL Bhuwan.
MOL said in a statement on Wednesday it had agreed to share this vessel by transferring a portion of a MOL subsidiary’s shares to GAIL.
In addition, the firm signed a new charter deal for a 174,000-cbm newbuild LNG carrier built by DSME as well.
The charter for the 294.9 meters long X-DF LNG will start in 2023, according to MOL.
MOL did not provide any additional information regarding the new charter or the ownership of the new vessel.
“By strengthening MOL and GAIL’s partnership, there will be synergies that will make us to provide more reliable services, and this will lead us to extend our services even further against the demand that will grow in the future,” the firm said.
MOL said it would strengthen its presence and business base in India, where energy demand is expected to increase.
On the other hand, GAIL holds a stake in India’s largest LNG importer, Petronet LNG, and buys volumes under long-term LNG deals from Qatar and the US as well as from the spot market.
It also operates the 5 mtpa Dabhol LNG terminal in India.
“With the global LNG portfolio of around 14 mmtpa, GAIL has emerged as one of the leading global LNG players and is actively involved in the LNG trading business in the international market,” the statement said.
