GAIL India, SOCAR to Cooperate in the Field of LNG

GAIL India and State Oil Company of Republic of Azerbaijan (SOCAR) have signed Memorandum of Understanding (MoU) to jointly pursue LNG opportunities, GAIL said Monday.

The two companies intend to cooperate through capacity booking, LNG procurement and promotion of LNG projects globally.

Both companies shall also cooperate in optimization of LNG marketing, sourcing and shipping requirements, GAIL said. In addition, GAIL and SOCAR will pursue business opportunities in upstream assets across the world and joint investment in petrochemical projects.

Speaking on the occasion, B C Tripathi, Chairman and Managing Director, GAIL said “We are happy to enter into this strategic relationship with SOCAR. Skills and strengths of both the parties would be leveraged to explore business opportunities jointly in natural gas and LNG business including new business developments across the gas value chain.”

In order to meet the growing appetite of Indian market, GAIL has been expanding its global presence to secure long term gas supplies. GAIL has signed a 20 year Sales and Purchase Agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for supply of 3.5 million tonnes per year of LNG. In addition, the company signed long-term LNG supply contract for 2.5 million tonnes per annum with Gazprom Marketing and Trading Ltd., Singapore for 20 years.

GAIL also signed a Terminal Service agreement for 2.3 million tonnes per year LNG liquefaction capacity with Dominion Cove Point LNG, USA. GAIL is also poised to make its foray into LNG shipping business with long-term charter hiring of multiple LNG vessels, mainly to transport LNG volumes from GAIL’s US portfolio to India.