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SCI to assist GAIL India ferry LNG from US

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Shipping Corporation of India (SCI) agreed to assist GAIL (India) in the charter hiring of LNG ships for transportation of 5.8 million tonne per annum of LNG.

GAIL entered into a memorandum of understanding (MoU) with SCI to transport the 5.8 mn t LNG per annum from Sabine Pass and Cove Point terminals in the US.

According to the MoU, GAIL would assign step-in right to SCI in the ownership of LNG ships. The MoU was signed in the presence of BC Tripathi, Chairman and Managing Director, GAIL (India), and BK Mandal, Chairman and Managing Director, SCI.

GAIL has signed an LNG sale and purchase agreement with Cheniere Energy Partners, LP (Cheniere) to procure 3.5 million metric tonne per annum of LNG from the latterÂ’s Sabine Pass terminal in Louisiana, US for 20 years.

GAIL also signed a terminal service agreement with Dominion through GAIL Global (US) LNG for booking 2.3 million metric tonne per annum liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in Maryland.

Under the agreement, 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.

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