GAIL hires LNG ship from Mitsui for ferrying US gas

State-owned gas firm GAIL India has hired a newly-built LNG ship from Japan's Mitsui OSK Lines for ferrying gas from nations such as the US for three years beginning 2021, and plans to charter hire additional vessels.

GAIL in its latest annual report said it has contracted long-term LNG from the USA (5.8 million tonnes per annum) and Russia (2.5 million tonnes) and is now actively trading the gas in international market.

The company in 2017 chartered hired the vessel Meridian Spirit from Total for three years, extendable by one year, to transport the LNG sourced from the USA.

It also hired two vessels - Cadiz Knuten and CLean Horizon - in 2018 for shorter periods to meet its shipping requirements.

"Based on the intermittent spot requirements during the FY 2019-20, GAIL plans to charter hire additional LNG ship(s) on spot / short term basis," it said. "Recently, GAIL has signed a Charter Party Agreement with Mitsui OSK Lines (MOL) for the hiring of a new build LNG vessel for a period of three years from the year 2021 onwards."