Gail India, Sumitomo to Work Together in LNG Sector

Gail India and Japanese trading house Sumitomo Corporation have agreed to work together in the fields of gas procurement and petrochemicals.

"Under the Memorandum of Understanding (MoU), GAIL and Sumitomo will pursue business opportunities in natural gas and LNG value chain business globally, specifically covering cooperation in petrochemicals, natural gas procurement, pipelines and LNG," Gail India said in a statement in Delhi on Friday, reports news agency Press Trust of India.

The two corporations have each booked a capacity of 2.3 million tonnes at Dominion Resources Inc's Cove Point liquefied natural gas (LNG) export terminal at Lusby, Maryland, USA and according to the MoU would coordinate for ensuring smooth operation of the terminal, Press Trust adds.

"There are significant opportunities in the North American gas markets and we are pleased to be partnering with Sumitomo in jointly developing this business," GAIL chairman and managing director B C Tripathi told the news agency.