Gail’s unit, Gail Global USA LNG, and US-based company WGL Midstream signed a sourcing agreement for the procurement of natural gas required to produce about 2.5 mtpa of LNG at the Cove Point terminal in Maryland.
The definitive gas sale and purchase agreement has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal, in which Gail holds liquefaction capacity, becomes operational.
Commenting on the development, B. C. Tripathi, Chairman and Managing Director of Gail, said, “This agreement is another milestone towards Gail’s efforts in sourcing of LNG to meet the rising demand of gas in the Indian market. We are now in the process of chartering of LNG ships thereby entrenching our presence across the complete LNG supply chain and bring more value to the Indian customers.”
Terry D. McCallister, Chairman, Chief Executive Officer, WGL Holdings, said the prolific Marcellus Shale production region is providing clean burning natural gas to Northeast and Mid-Atlantic regions of the United States and now will supply the country of India as well.
Press Release; Image: Dominion