CoolCo, GAIL seal 14-year charter deal for newbuild LNG carrier

LNG Carrier pure play CoolCo has scored a 14-year time charter with India’s leading natural gas company GAIL (India) for one of the company’s two newbuild LNG carriers currently under construction.

The deal brings CoolCo’s firm revenue backlog to more than $1.2bn and total revenue backlog including extensions to almost $1.9bn as of March 31, 2024.

The Oslo-based LNG carrier owner said it will deliver the newbuild to GAIL in the Gulf of Mexico, with the 14-year time charter commencing in early 2025.

According to CoolCo, the newbuild’s time charter 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 by two additional years beyond the firm 14-year period.

Richard Tyrrell, chief executive of CoolCo, said: “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.”

S Bairagi, executive director (marketing – shipping & international LNG) of GAIL, pointed out that: “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.”

CoolCo’s partner GAIL owns and operates a network of over 16,200 km of natural gas pipelines in India.

It has a gas trading share of over 50% in India whilst it has with its subsidiaries / JVs a formidable market share in City Gas Distribution.

GAIL also has a significant LNG market portfolio, and the company is expanding its renewable presence in solar, wind and biofuel.