GAIL secures 14-year charter with CoolCo for newly built LNG carrier
May 18, 2024
New Delhi [India], May 18 : GAIL (India) Limited has signed a 14-year Time Charter Party with Cool Company Ltd, in a move to bolster its LNG carrier fleet, for a newly built LNG carrier.
According to a press release, the charter agreement is set to commence in early 2025, with GAIL retaining an option to extend the charter by an additional two years beyond the initial 14-year period.
This strategic partnership underscores GAIL's commitment to enhancing its LNG transportation capabilities in response to India's burgeoning demand for natural gas.
Currently, GAIL operates a fleet of four LNG carriers. The addition of the new vessel aligns with the company's strategic plans to meet the rising demand for natural gas in India.
S Bairagi, Executive Director (Marketing - Shipping & International LNG) of GAIL, expressed enthusiasm about the agreement, stating, "GAIL is looking forward to taking delivery of the LNG carrier as part of its ambitious plans for meeting the large and growing demand for natural gas in India."
CoolCo's CEO, Richard Tyrrell, also highlighted the importance of the agreement, saying, "We are delighted to announce a long-term charter with GAIL, the leading gas company in one of the highest growth markets for LNG. The leading-edge technology and best-in-class economic and environmental performance of this newbuild LNG carrier secure GAIL's ability to transport clean-burning LNG in a highly efficient and cost-effective manner for many years to come."
As India continues to expand its infrastructure to support natural gas usage, such strategic alliances are critical for meeting energy demands sustainably.
The new LNG carrier, equipped with advanced technology, is expected to play a crucial role in this dynamic growth phase, ensuring efficient and environmentally friendly transportation of LNG.
