Top > News Releases > MOL, NYK LINE, "K" Line, Shipping Corporation of India Make Deal on Long-Term Time Charter and Construction of LNG Carrier to Serve Petronet LNG

February 21, 2006
Kawasaki Kisen Kaisha, Ltd.

MOL, NYK LINE, "K" Line, Shipping Corporation of India
Make Deal on Long-Term Time Charter and Construction of LNG Carrier
to Serve Petronet LNG

TOKYO - A consortium of Mitsui O.S.K. Lines, Ltd. (MOL: President: Akimitsu Ashida), Nippon Yusen Kaisha (NYK LINE: President: Koji Miyahara), Kawasaki Kisen Kaisha, Ltd. ("K" Line: President: Hiroyuki Maekawa), and Shipping Corporation of India (SCI) today announced an agreement with New Delhi-based Petronet LNG Limited (PLL) for a long-term time charter of a new liquefied natural gas (LNG) carrier. At the same time, the consortium concluded an agreement with Samsung Heavy Industries Co., Ltd. (Headquarters: Seoul, South Korea), to build the vessel.

PLL is the first LNG importer in India, and has imported 5 million tons of LNG a year from Qatar since 2004, using two LNG carriers. PLL has decided to import an additional 2.5 million tons per year from Qatar. The new LNG carrier will supply this additional LNG under a long-term time charter contract. The four-company consortium that won the contract for the new carrier also operates the two vessels already in service, and will continue to ensure a steady supply of LNG to India, where energy demand continues to grow.

Outline of Charter Contract

Date and place of contract signing February 21, 2006, New Delhi, India
Owner India LNG Transport Company (No.3) S.A. (Headquarters: Panama), new JV by MOL, NYK LINE, "K" Line, and SCI
Charterer Petronet LNG Limited
Charter period 25 years after launch of the new LNG carrier (September, 2009)
Vessel One new membrane-type LNG carrier (154,800m3)
Shipbuilder Samsung Heavy Industries Co., Ltd.
Ship management Kawasaki Kisen Kaisha, Ltd.

[Reference]

Outline of Petronet Project

Buyers: Petronet LNG Limited (PLL)
(Main shareholders)

GAIL (India) Limited (GAIL) 12.5%
Bharat Petroleum Corporation Ltd. (BPCL) 12.5%
Indian Oil Corporation (IOC) 12.5%
Oil & Natural Gas Co., Ltd. (ONGC) 12.5%
Gas de France (GdF) 10.0%
Asia Development Bank (ADB) 5.20%

GAIL: India's largest national gas company, with a 95% share of the Indian gas market

BPCL: India's third largest national petroleum refinery and sales company

IOC: India's largest national petroleum refinery and sales company, and largest company in India

ONGC: National crude oil and natural gas extraction and refining company

Seller: Ras Laffan Liquefied Gas Company Ltd. II (RasGas II)

LNG purchasing volume/period:
5 million tons per year, 2004 - 2027
2.5 million tons per year, 2009 - 2034

LNG discharging port: Dahji Port, Gujarato State of India

Customers to buy gas:
PLL has already concluded the trading contract for natural gas including "Take or Pay" conditions, with GAIL, BPCL, and IOC. GAIL, BPCL, and IOC will sell the gas to IPP, fertilizer and gas companies, and other customers.

PDF

To read the PDF files, you need Adobe Reader installed on your computer.
If you do not have it, you can get it here.

pagetop