GAIL (India) on Thursday announced that it had signed a memorandum of understanding (MoU) with Shipping of Corporation India (SCI) for transporting LNG sourced by GAIL from the U.S.
The MoU was signed in the presence of B.C. Tripathi, Chairman and Managing Director, GAIL (India), and B.K. Mandal, Chairman and Managing Director, SCI. Under the MoU, both entities would join hands for transportation of 5.8 million tonnes per annum of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in the U.S. The co-operation would include SCI assisting GAIL in the charter hiring of LNG ships and GAIL assigning step-in right to SCI in the ownership of LNG ships, an official statement issued here said.
GAIL has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP (Cheniere) to procure 3.5 million metric tonnes per annum of LNG from the latter’s Sabine Pass terminal in Louisiana, U.S. for 20 years. GAIL has also signed a terminal service agreement with Dominion through GAIL Global (U.S.) LNG LLC for booking 2.3 million metric tonnes per annum liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in Maryland. Under the agreement, GAIL is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.