Gail signs MoU with Japan's Sumitomo Corp for LNG and petrochem

According to a PTI report, Gail India Limited has signed a Memorandum of Understanding with Japan’s Sumitomo Corporation for cooperation in gas procurement and petrochemicals. As per the MoU, Gail and Sumitomo will pursue business opportunities in natural gas and liquefied natural gas (LNG) value chain business globally, specifically covering cooperation in petrochemicals, natural gas procurement, pipelines and LNG. Gail and Sumitomo have each booked a capacity of 2.3 million tonnes at Dominion Resources Inc's Cove Point LNG export terminal at Lusby, Maryland, USA.
 
“The two have also agreed to coordinate for ensuring smooth operation of the terminal,” said Gail in a statement, adding that both the firms view US market as a growth area for their line of businesses and would cooperate on businesses ranging from upstream to downstream.
 
B C Tripathi, Chairman and Managing Director, Gail India, said, "There are significant opportunities in the North American gas markets and we are pleased to be partnering with Sumitomo in jointly developing this business."
 
In USA, Gail’s wholly owned subsidiary, Gail Global (USA) Inc has acquired a stake in Eagle Ford shale acreage. It also has signed a contract to buy 3.5 million tonnes per annum of LNG from Sabine Pass for 20 years. Another 2.3 million tonnes has been contracted from Cove Point terminal.
 
Gas from Sumitomo's fields in the northeast of US will be liquefied at the Cove Point terminal for shipping to countries like India and Japan.