GAIL Expands LNG Carrier Fleet, Inks Time Charter Pact With NYSE-Listed CoolCo To Ship Gas From US

Taking another step towards expanding its LNG carrier fleet, GAIL has entered into a 14-year time charter party with the New York Stock Exchange-listed Cool Company Ltd for a new-build LNG carrier.

Cool Company will deliver the LNG tanker, currently under construction to GAIL in the Gulf of Mexico, with the 14-year time charter commencing in early 2025. The highly efficient, state-of-the-art LNG carriers are some of the most efficient, highest performing, and lowest-emission vessels in the global fleet.

Briefly put, a time charter involves leasing a vessel for a fixed period, for a daily rate, where the charterer is free to use the vessel. The owner only looks after maintenance-related cost.

The time charter contract is intended to secure the long-term supply of LNG into the fast-growing Indian market, with GAIL having the option to extend the charter period by two additional years beyond the firm 14-year period.

Commenting on the time charter agreement with CoolCo, GAIL’s executive director (marketing – shipping and international LNG) S Bairagi said, "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."

GAIL presently has four LNG carriers in its fleet.

The state-owned gas utility will use the Cool Company's LNG tanker to ship more super-chilled fuel from the United States, where it has contracted to buy 2.5 million tonnes per annum of LNG from the Sabine Pass Liquefaction LLC, USA.