GAIL India Signs Gas Sourcing Agreement with WGL Midstream

GAIL (India) Limited on Friday announced signing of a sourcing agreement between its subsidiary GAIL Global USA LNG LLC (GGULL) and US-based company WGL Midstream Inc. (WGLM) for procurement of natural gas required to produce about 2.5 MTPA of LNG at the Cove Point Terminal located in Maryland, US.

WGLM is a subsidiary of WGL Holdings Inc., a natural gas company of the United States.

The definitive gas sale and purchase agreement has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal, in which GGULL holds liquefaction capacity, becomes operational, GAIL said.

Commenting on the development, B. C. Tripathi, Chairman and Managing Director of GAIL, said “This agreement is another milestone towards GAIL’s efforts in sourcing of LNG to meet the rising demand of gas in the Indian market. We are now in the process of chartering of LNG ships thereby entrenching our presence across the complete LNG supply chain and bring more value to the Indian customers.”

GAIL has signed a 20 year Sales and Purchase Agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners for supply of 3.5 million tons per year of LNG. The company also signed a Terminal Service agreement for 2.3 million tons per year of LNG liquefaction capacity with Dominion Cove Point LNG.

WGL Midstream handles non-regulated gas business with operations covering midstream infrastructure and energy services. Its parent, WGL Holdings, Inc., is a public utility holding company serving the Washington, D.C. metropolitan region and is a leading source for clean and efficient energy solutions with activities in 30 states.