GAIL to source gas from American co for its Maryland LNG terminal.

GAIL (India) recently said its subsidiary, GAIL Global USA LNG LLC, has signed an agreement with the US-based WGL Midstream Inc (WGLM) for sourcing natural gas to produce about 2.5 million tonnes of LNG at its Cove Point Terminal, Maryland, US.

WGLM is a subsidiary of WGL Holdings Inc., a prominent natural gas company in the US.

GAIL, however, did not disclose the price at which it is sourcing the gas. The prevailing gas price in the US is in the range of $4-4.5/million British thermal units.

The definitive gas sale and purchase agreement has been signed for 20 years and supplies are expected to commence from 2017-end when the LNG terminal, in which the GAIL subsidiary holds liquefaction capacity, becomes operational.

While the intention is to get this gas to India, the modalities are yet to be worked out, an official told Business Line.


HBL