K-Line lands time charter deal with India state-owned natural gas company

Kawasaki Kisen Kaisha (K-Line) said it has agreed a long-term time charter contract through a shipowning company established in Singapore with GAIL.

According to K-Line, the new shipowning company it formed with GAIL has also agreed a shipbuilding contract with Samsung Heavy Industries for a 174,000-m³ LNG carrier to service the charter.

"This is the first long-term time charter contract between GAIL and K-Line involving a newly vessel built. The plan is for this new vessel to be engaged in LNG transport for GAIL beginning in 2027," K-Line said.

The company highlighted its 40 years of owning LNG carriers, starting with 1983-built Bishu Maru and said it is positioning its LNG business as one of the "top-priority areas for future investment".

"This agreement is part of our strategy," the company said. "K-Line will continue to expand its long-term contracts and accommodate the growing demand for energy by responding to the diverse needs of its customers."

K-Line also recently announced it has taken delivery of the first liquefied carbon dioxide (LCO2) carrier for the Northern Lights carbon capture, transport and storage project in Europe. 

The delivery of liquefied CO2 carrier Northern Pioneer marks a pivotal moment in the maritime industry’s pursuit of carbon capture and storage (CCS) solutions.

Ready for operation, the vessel will transport liquefied CO2 from capture facilities to Northern Lights’ receiving terminal in Øygarden, where the CO2 will be stored underground.

Managed by K Line LNG Shipping (UK) Ltd, Northern Pioneer is the first of four vessels ordered by Northern Lights JV DA, a joint venture between Equinor, Shell and TotalEnergies.

As Northern Lights’ shipping and commercial manager Baris Dolek noted at the Riviera CO2 Shipping & Terminals Conference in June 2024, in London, “Our first two CCS ships are operational this year, showcasing what is achievable when subsidies and collaboration align.”

The vessel boasts a cargo tank capacity of 7,500 m³ and is designed to carry CO2 at pressures up to 19 bar(g) at temperatures as low as -35°C. Equipped with LNG propulsion, a wind-assisted rotor sail and air lubrication systems, Northern Pioneer embodies the advanced LCO2 carrier designs emerging in the industry.