GAIL, Chubu Electric Sign MoU on LNG Purchase Cooperation

India’s GAIL India and Japan’s Chubu Electric Power Company signed Memorandum of Understanding (MoU) under which the two firms shall mainly explore possibilities for collaboration in the area of joint LNG procurement.

The MoU was signed the Gastech Conference being held in Seoul, South Korea.

GAIL and Chubu will also seek to collaborate on shipping optimization. “Chubu and GAIL are large LNG importers having considerable synergy between their LNG business profiles. It is assessed that with GAIL joining hands with Chubu for jointly pursuing LNG procurement and other allied business opportunities, such a collaboration shall augment GAIL’s efforts to aggressively source LNG volumes on competitive terms and would be a win-win proposition for both companies,” GAIL said in a statement Monday.

GAIL’s latest move is also in sync with the company’s recent efforts in establishing and promoting Asia LNG Forum, a sort of Asian LNG buyers’ club, the Indian firm said. GAIL is also actively working towards establishing a regional gas trading hub for Asia as well as an Asian gas index.

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