Japanese shipowner Mitsui OSK Lines (MOL) has chartered out a second LNG carrier newbuild to the gas importer and government-controlled utility GAIL (India).

The vessel will be built by South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering with a charter period from 2023, according to a joint statement by MOL and Gail on Wednesday.

The parties signed a contract for the first vessel in 2019 and it has been chartered to Gail through a wholly owned MOL subsidiary from 2021, the statement said. “At this time, MOL and GAIL reached an agreement to share the vessel by transferring a portion of a wholly owned MOL subsidiary’s shares to GAIL," it added.

By strengthening MOL and GAIL's partnership, there will be synergies that will make MOL provide more reliable services. This will lead MOL to extend services even further against the demand that will grow in the future. It will strengthen its presence and business base in India, where energy demand is expected to increase.

MOL sets regional strategies as one of the pillars in “Rolling Plan 2022," its fiscal 2022 management plan, and takes a proactive stance in its business expansion in Asia, especially in India, as a region with strong potential for growth. It will strengthen its presence and business base in India, where energy demand is expected to increase.

MOL continues to work proactively to provide high-quality LNG transport services that precisely meet customer needs by leveraging the know-how and network it has accumulated as one of the world's largest LNG carrier ownership and management companies.

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 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.

GAIL (India) is one of the largest natural gas processing & distribution companies. The Government of India held 51.90% stake in Gail (India) as on 30 September 2022.

The company's consolidated net profit declined 55% to Rs 1,305 crore in Q2 FY23 from Rs 2,873 crore in Q2 FY22. Net revenue from operations during the quarter rose by 78% YoY to Rs 38,680 crore. The GAIL (India) scrip declined 1.84% to Rs 96 on the BSE. The Nifty 50 index was down 111.95 points, or 0.61% to 18,273.35.

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