State-owned gas utility GAIL (India) Ltd. Thursday signed an agreement with national flag carrier Shipping Corp of India Ltd. (SCI) for transporting liquid gas (LNG) from the US, reports said.
SCI will help GAIL charter ships to move 5.8 million tons a year of liquefied natural gas (LNG) that the state-run gas firm has contracted from Sabine Pass and Cove Point terminals in the US.
The agreement was signed in the presence of GAIL Chairman and Managing Director B.C. Tripathi and SCI Chairman & Managing Director B..K. Mandal.
"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," it said.
GAIL has signed a 20-year contract to buy 3.5 million tons a year of LNG from Cheniere Energy Partners' Sabine Pass Terminal in Louisiana, USA for a period of 20 years. The company has also booked an additional 2.3 million tons capacity at Dominion's 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," the statement added.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.