Gas transmission & marketing company signs long-term charter contract with Kawasaki Kisen Kaisha, Ltd for LNG ship
The stock is up by 60 per cent from its 52-week low of Rs 125.25 per share and gave multibagger returns of 130 per cent in 3 years.
GAIL (India) Limited has taken a significant step towards expanding its LNG transportation capabilities by signing a long-term time charter contract with Kawasaki Kisen Kaisha, Ltd. ("K" LINE). This strategic partnership will involve a new-built LNG carrier, constructed by Samsung Heavy Industries Co. Ltd., Korea. The vessel, equipped with a 174,000 cubic meter tank capacity, is expected to commence operations in 2027, adding to GAIL's existing fleet of four LNG vessels. This collaboration with "K" LINE, a renowned player in LNG transportation, underscores GAIL's commitment to securing reliable and efficient LNG supplies to meet the growing domestic demand and international market requirements.
By diversifying its sourcing portfolio and expanding its fleet, GAIL aims to enhance its flexibility and resilience in the global LNG market. The company's strategic approach ensures a robust supply chain, enabling it to fulfil its obligations to domestic consumers while also exploring opportunities in the international market. This latest development reinforces GAIL's position as a major player in the Indian energy landscape and highlights its proactive efforts to secure long-term energy supplies for the nation.
Earlier, GAIL (India) Limited, in collaboration with INEOS, has taken a significant step towards reviving its Purified Terephthalic Acid (PTA) manufacturing plant in Mangalore. By signing an Amendment Agreement, GAIL aims to overcome the hurdles faced during the previous ownership and ensure the plant's successful operation. This strategic move positions GAIL to capitalize on the growing demand for PTA, a crucial raw material in the polyester industry, and strengthen its foothold in the petrochemical sector.
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About GAIL (INDIA) LTD: GAIL is India’s leading gas transmission & distribution company with extensive gas transmission and distribution pipelines in the country, LPG extraction plants and a gas-based petrochemical plant besides upstream oil and gas blocks and interests in LNG terminals in India. GAIL also has a global presence and business interests in the USA, Singapore, Myanmar, Russia, China and Egypt. Further, GAIL is pursuing business opportunities in the entire value chain of renewable energy, and other clean energy ventures including Green Hydrogen and Biofuels.
The company has a market cap of over Rs 1.30 lakh crore. The stock is up by 60 per cent from its 52-week low of Rs 125.25 per share and gave multibagger returns of 130 per cent in 3 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.