GAIL Bolstered Busines Operation: Signed 14-Year Time Charter

In a move to bolster its liquefied natural gas (LNG) transportation capabilities, GAIL (India) Limited has signed a significant 14-year time charter agreement with Cool Company Ltd. This strategic partnership with the pure-play LNG shipping company secures a newbuild LNG carrier for GAIL’s fleet, with the charter commencing in early 2025.

The agreement offers GAIL the flexibility to extend the charter period by an additional two years following the initial 14-year term, solidifying GAIL’s access to this critical vessel for the long term. This expansion of GAIL’s LNG carrier fleet aligns with the company’s commitment to meeting the growing demand for natural gas in India.

GAIL presently has four LNG carriers in its fleet. Commenting on the time charter agreement with CoolCo, Mr S Bairagi, Executive Director (Marketing – Shipping & International LNG) GAIL, 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.”

“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,” said Mr Richard Tyrrell, CEO of CoolCo

On May 16, 2024, GAIL (India) Limited reported a 67% growth in profit after tax (PAT) in FY24 to ₹8,836 crore as against ₹5,302 crore in FY23. Revenue from Operations amounted to ₹1,30,638 crore in FY24 compared to ₹1,44,302 crore in FY23. On a QoQ basis, the company’s revenue stood at ₹32,335 crore compared to ₹34,254 crore in Q3 FY2024.

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