GAIL (India) Ltd, India’s largest natural gas company, said that it had signed a Memorandum of Understanding (MoU) with Sumitomo Corp., the international trader and investor based in Japan. Under the understanding, GAIL and Sumitomo will pursue business opportunities in the natural gas and LNG value chain globally, with a specific focus on petrochemicals, natural gas procurement, pipelines and LNG.
GAIL and Sumitomo already hold half of the capacity in the 4.6 million tpa Cove Point LNG liquefaction terminal, which will source natural gas from the Marcellus and Utica shale basins in the US. The companies have agreed to coordinate to ensure the smooth operation of the terminal. Both companies view the US market as a business growth area and would cooperate on both upstream to downstream business areas.
Mr. B.C. Tripathi, Chairman and Managing Director of GAIL, said: "This is an important occasion for GAIL and we are happy to enter into this strategic relationship with Sumitomo with whom we are long-term partners in Cove Point project. There are significant opportunities in the North American gas markets and we are pleased to be partnering with Sumitomo in jointly developing this business.”
Adapted from press release by Ted Monroe