GAIL (India), the state-owned gas utility has inked an agreement with national flag carrier Shipping Corporation of India (SCI) for transporting liquid gas (LNG) from US. SCI will help GAIL charter ships to move 5.8 million tonnes a year of liquefied natural gas (LNG) that the state-run gas firm has contracted from Sabine Pass and Cove Point terminals in US.
GAIL has signed a 20-year contract to buy 3.5 million tonnes a year of LNG from Cheniere Energy Partners' Sabine Pass Terminal in Louisiana, USA for a period of 20 years. The company has also booked an additional 2.3 million tonnes capacity at Dominion’s Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, GAIL is required to make its own arrangements for transportation of LNG from these terminals.
