Source: ET Infra
State-owned GAIL (India) Ltd, India’s biggest gas utility, has hired a new liquefied natural gas (LNG) carrier for 14 years, beginning early 2025, from the New York Stock Exchange-listed Cool Company Ltd, for an undisclosed daily rate.
Cool Company will deliver the LNG tanker, one of the two ordered by the Company at an undisclosed yard, to GAIL in the Gulf of Mexico, Cool Company said in a statement.
Eastern Pacific Shipping Pte Ltd and its affiliates are the largest shareholders of Cool Company.
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.
Cool Company’s two newbuilds expected to be delivered during the fourth quarter of 2024 are highly efficient, state-of-the-art LNG carriers that are some of the most efficient, highest performing, and lowest-emission vessels in the global fleet, it said.
The time charter increases Cool Company’s firm revenue backlog to more than $1.2 billion and total revenue backlog including extensions to almost $1.9 billion as of March 31, 2024, it added.
“GAIL is looking forward to taking delivery of the LNG carrier as part of its ambitious plan for meeting the large and growing demand for natural gas in India,” said S Bairagi, Executive Director (Marketing – Shipping & International LNG) of GAIL.
“The leading-edge technology and best-in-class economic and environmental performance of this newbuild LNG carrier secure GAIL’s ability to transport the clean-burning LNG in a highly efficient and cost-effective manner for many years to come,” said Richard Tyrrell, CEO of Cool Company.
GAIL will use the 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, beginning February 2018.
It has also booked 2.3 million tonnes per annum of capacity in the Cove Point LNG liquefaction terminal, also in the US, and the supplies commenced from April 2018.
The firm currently has four LNG tankers to bring LNG from the U.S., including two-time charter agreements with Mitsui O.S.K Lines Ltd and two with NYK Line Ltd, both from Japan.
GAIL is constantly expanding its global presence through its participation in projects/ventures along the natural gas value chain. With a global LNG portfolio of around 14 million metric tonnes per annum (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.
Cool Company owns nine modern energy-efficient TFDE LNG carriers, and four modern 2-stroke LNG carriers, of which two are set for delivery during the second half of 2024.The vessels range in LNG capacity from 160-174 cubic metres, a size that is preferred by charterers, who also benefit from the advanced containment technology with low boil off-rates (0.08-0.125 percent).
