Top Page > Press Release 2006 > 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

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

TOKYO - A consortium of Mitsui O.S.K. Lines, Ltd. (MOL: President: Akimitsu Ashida), Nippon Yusen Kabushiki 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.