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GAIL and WGL Midstream sign gas sourcing agreement

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LNG Industry,

GAIL (India) Ltd’s subsidiary, GAIL Global USA LNG LLC (GGULL) has signed a sourcing agreement with US-based company WGL Midstream Inc. (WGLM), a subsidiary of WGL Holdings Inc.

The agreement is for procurement of natural gas required to produce approximately 2.5 million tpy of LNG at the Cove Point LNG terminal located in Maryland, US.

The definitive gas sale and purchase agreement (SPA) has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal becomes operational.

Mr. 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 Inc., said: “WGL Midstream’s long-term relationship with GAIL capitalizes on the growing supply of abundant natural gas from the Marcellus Shale production region. This growing supply source has been providing clean burning natural gas to Northeast and Mid-Atlantic regions of the United States and now will supply […] India as well."

Adapted from press release by

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