GAIL and Shipping Corporation join hands for LNG Shipping
New Delhi, June 6, 2013. GAIL (India) Limited and the Shipping of Corporation India Limited (SCI) today signed a Memorandum of Understanding (MOU) to cooperate for transportation of LNG sourced by GAIL from USA. The MoU was signed in the presence of Shri B.C. Tripathi, Chairman & Managing Director, GAIL and Shri B.K. Mandal, Chairman & Managing Director and Director (Finance), SCI. Other senior officials of GAIL and SCI were present on the occasion.
Under the MoU, both GAIL & SCI shall cooperate for transportation of 5.8 MTPA of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in USA. The cooperation would include SCI assisting GAIL in the charter hiring of LNG ships and GAIL assigning step-in right to SCI in the ownership of LNG Ships.
GAIL has signed a LNG Sales & Purchase Agreement with Cheniere Energy Partners, LP (Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, USA for a period of 20 years. GAIL has also signed a Terminal Service Agreement with Dominion through GAIL Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland. As the agreements are on FOB basis, GAIL is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
Speaking on the occasion Shri B.C. Tripathi, CMD, GAIL said "LNG has become important business vertical of GAIL and the experience of SCI in the shipping business will bring huge synergetic advantage for both the companies. We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
Shri B.K. Mandal, CMD and Director (Finance), SCI said that "With several LNG import projects being conceived in the country, LNG is seen as a key growth area for Shipping Corporation of India. SCI is planning to develop separate vertical within the Company to manage LNG shipping."
About Shipping Corporation of India
SCI is the only Indian Company having experience in LNG shipping. Currently, the Company is managing 03 ships which are on long term charter hire with Petronet LNG Limited. SCI is the largest Indian Shipping Company with substantial interest in various segments of the shipping trade. SCI's owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels, passenger-cum- cargo vessels, phosphoric Acid/Chemical carriers, LPG/Ammonia carriers and offshore Supply vessels. As the Country's premier shipping line, the SCI owns and operates around 38% of the Indian tonnage, and has operating interests in practically all areas of the shipping business, servicing both national and international trades.
About GAIL (India) Limited
GAIL (India) Ltd., is India's principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications. The Company has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production through equity and joint venture participations.
New Delhi, June 6, 2013. GAIL (India) Limited and the Shipping of Corporation India Limited (SCI) today signed a Memorandum of Understanding (MOU) to cooperate for transportation of LNG sourced by GAIL from USA. The MoU was signed in the presence of Shri B.C. Tripathi, Chairman & Managing Director, GAIL and Shri B.K. Mandal, Chairman & Managing Director and Director (Finance), SCI. Other senior officials of GAIL and SCI were present on the occasion.
Under the MoU, both GAIL & SCI shall cooperate for transportation of 5.8 MTPA of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in USA. The cooperation would include SCI assisting GAIL in the charter hiring of LNG ships and GAIL assigning step-in right to SCI in the ownership of LNG Ships.
GAIL has signed a LNG Sales & Purchase Agreement with Cheniere Energy Partners, LP (Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, USA for a period of 20 years. GAIL has also signed a Terminal Service Agreement with Dominion through GAIL Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland. As the agreements are on FOB basis, GAIL is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
Speaking on the occasion Shri B.C. Tripathi, CMD, GAIL said "LNG has become important business vertical of GAIL and the experience of SCI in the shipping business will bring huge synergetic advantage for both the companies. We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
Shri B.K. Mandal, CMD and Director (Finance), SCI said that "With several LNG import projects being conceived in the country, LNG is seen as a key growth area for Shipping Corporation of India. SCI is planning to develop separate vertical within the Company to manage LNG shipping."
About Shipping Corporation of India
SCI is the only Indian Company having experience in LNG shipping. Currently, the Company is managing 03 ships which are on long term charter hire with Petronet LNG Limited. SCI is the largest Indian Shipping Company with substantial interest in various segments of the shipping trade. SCI's owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels, passenger-cum- cargo vessels, phosphoric Acid/Chemical carriers, LPG/Ammonia carriers and offshore Supply vessels. As the Country's premier shipping line, the SCI owns and operates around 38% of the Indian tonnage, and has operating interests in practically all areas of the shipping business, servicing both national and international trades.
About GAIL (India) Limited
GAIL (India) Ltd., is India's principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications. The Company has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production through equity and joint venture participations.
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