GAIL and SCI join hands for LNG shipping

GAIL and SCI join hands for LNG shippingGAIL (India) Limited and the Shipping of Corporation India Limited (SCI) has signed a MoU to cooperate for transportation of LNG sourced by GAIL from USA.  The MoU was signed in the presence of B.C. Tripathi, Chairman and Managing Director, GAIL and B.K. Mandal, Chairman and Managing Director and Director (Finance), SCI. Other senior officials of GAIL and SCI were also present on the occasion.Under the MoU, both GAIL and SCI will cooperate for transportation of 5.8 MTPA of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in the United States. The cooperation 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.GAIL has signed a LNG sales and purchase agreement with Cheniere Energy Partners, LP  (Cheniere) to procure 3.5 MMTPA of LNG from the latter’s Sabine Pass Terminal in Louisiana, US for 20 years. GAIL has also signed a terminal service agreement with dominion through GAIL Global (US) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project in Maryland. As the agreements are on FOB basis, 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.Speaking on the occasion B.C. Tripathi, CMD, GAIL, said “We expect that this partnership will enable faster development of in-house fleet operations capabilities for the company.