Mitsui O.S.K. Lines, Ltd. (MOL) announced that an agreement has been signed between them and GAIL (India) Limited (Head Office: New Delhi, India). The agreement has been signed through a wholly owned subsidiary of MOL, which is regarding a short-term charter agreement for a liquefied natural gas (LNG) carrier.
GAIL is the largest natural gas Company of India with approx. 11,400 Km of the cross country existing trunk pipeline network and another 4,000 Km pipelines in advance stage of completion. In India, GAIL is ranked no. 1 gas pipeline company and also comes among the top gas utilities in Asia. The company business activities range from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); the transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE. The company has worked on many sectors for extending its presence, which includes Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution, and Exploration & Production through equity and joint venture participation. Lately, GAIL also diversified into solar and wind power generation. GAIL currently holds an LNG / RLNG portfolio of about 14 MTPA from various long and short-term contracts. The company is also committed globally for LNG trading. The net income of the company is about USD 900 million with a consolidated turnover of GAIL for FY 2018-19 is about USD 11 billion.
It is expected that in India there will be a continuous increase in demand for gas, registering significant economic growth. MOL has been participating in the Indian market since the beginning of LNG import into the country, with the distinction of having brought the first gas from Qatar. MOL is currently not only participating in the transportation of LNG but is also involved in the projects in India of floating LNG receiving terminal and Ethane transportation by the first Very Large Ethane Carrier (VLEC) in the world. The present Agreement has been concluded in line with the direction, which MOL declared in the Management Plan “Rolling Plan 2019”, to strategically allocate management resources to businesses where MOL has strengths.
In response to increasing demands for energy transportation, MOL will continue its effort to provide stable sea transportation services with high safety standards, which the company is known for.