“GAIL arm to source natural gas for liquefaction at Cove Point, US”
India’s state-owned natural gas utility GAIL (India) Ltd announced on Friday that its subsidiary, GAIL Global USA LNG, had signed an agreement with US-based WGL Midstream Inc for sourcing gas required to produce 2.5 million tonnes of liquefied natural gas (LNG) a year at the Cove Point Terminal in Maryland, US.
WGL Midstream is a subsidiary of WGL Holdings, a large natural gas company in the US. GAIL will import the gas under the pact to meet India’s rising demand for natural gas. The definitive gas sale and purchase agreement was signed for 20 years. Supplies are expected to commence from 2017 when the LNG terminal, in which GAIL Global USA LNG holds liquefaction capacity, becomes operational.
GAIL was assisted in the commercial and legal aspects of the transaction by Pace Global, Thompson & Knight and law firm Amarchand Mangaldas. WGL Midstream engaged Vega Energy Partners for the execution of these transactions. Vega will also play a role in the implementation of these contracts.