Shipping Corp gains on LNG transport deal with GAIL

Shares of Shipping Corporation of India were up over 3% at Rs 36.40 in early trades after the company said it has signed a deal with state-owned GAIL (India) for transportation of LNG

Shares of Shipping Corporation of India were up over 3% at Rs 36.40 in early trades after the company said it has signed a deal with state-owned GAIL (India) for transportation of liquid natural gas (LNG).

According to the memorandum of understanding signed between both the state-owned companies, Shipping Corporation will help in transportation of 5.8 MTPA of LNG being sourced by GAIL and also assist GAIL for chartering LNG ships.

State-owned GAIL (India) has entered into an agreement with Cheniere Partners (LP) to purchase  3.5 MMTPA of LNG from the latter's Sabine Pass terminal in Louisiana, USA for a period of 20 years.

Nearly 50,000 shares were traded so far on both the stock exchanges.