GAIL India, Vega Energy Partners to Sign Gas Deal Soon

GAIL India is likely to sign a gas-supply agreement with Houston-based Vega Energy Partners shortly, sources have told Business Standard newspaper.

The deal is for supplying gas to the Cove Point LNG Terminal project located at Lusby in Maryland, US.

"We have been looking to book gas supply for Cove Point and this deal would be a step forward," an official from GAIL India told the newspaper, without providingg details. 

In April last year, GAIL signed a terminal service agreement for booking 2.3 million tonnes per annum (mtpa) liquefaction capacity in Cove Point LNG terminal.

Under the terminal service agreement, GAIL will procure its own natural gas and deliver for liquefaction at the terminal. LNG will then be loaded into ships arranged by GAIL, which will pay service charges to Dominion Cove for liquefaction of natural gas.