GAIL Global (USA) LNG LLC, the American subsidiary of state-owned GAIL (India), entered into a terminal service agreement with US-based Dominion to book a 2.3 mmtpa liquefaction capacity in the Cove Point LNG liquefaction terminal project at Lusby, Maryland.
According to this agreement, Dominion would allow GAIL to use its Cove Point pipeline infrastructure for liquefaction at the terminal. GAIL would transport the liquefied gas into India through ships from the Chesapeake Bay.
In the premises of its existing 11.7 mn mtpa regasification terminal, Dominion will be setting up the liquefaction facilities.
In 2014, the company would begin construction work on the facility and put the liquefaction facilities into service in 2017.
Dominion is marketing 4.6 mmtpa and GAIL has booked half of this capacity for 20 years. Cove Point will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific shale gas basins in North America.
GAIL expects that this agreement would raise its scale of operations in the US where it already has a presence through its participation in a shale gas asset in the Eagle Ford basin.
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