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Gail and Socar ink LNG cooperation agreement to feed India’s energy demand

03rd November 2014

Gail India has signed a memorandum of understanding (MoU) with State Oil Company of Republic of Azerbaijan (Socar), to jointly pursue LNG opportunities through capacity booking, LNG procurement and promotion of LNG projects globally

Gail and Socar ink LNG cooperation agreement to feed India’s energy demand
India’s energy demand continues to outpace the growth of its domestic production, causing the South Asian mega-consumer to search further afield for sustainable sources of energy

“Skills and strengths of both the parties would be leveraged to explore business opportunities jointly in natural gas and LNG business including new business developments across the gas value chain.”

Both companies will also cooperate in the optimisation of LNG marketing, sourcing and shipping requirements.

In addition, Gail and Socar will pursue business opportunities in upstream assets across the world and joint investment in petrochemical projects.

“We are happy to enter into this strategic relationship with Socar,” said B C Tripathi, chairman and managing director of Gail.

India’s energy demand continues to outpace the growth of its domestic production, causing the South Asian mega-consumer to search further afield for sustainable sources of energy.

In 2013, India was the world’s fourth-largest liquefied natural importer causing a need for continued investment in regasification facilities and LNG terminals.

Gail has been expanding its global presence to secure long term gas supplies. It has previously signed a 20 year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of US-based Cheniere Energy Partners, for supply of 3.5 million tonnes per year of LNG. In addition, the company signed a long-term LNG supply contract for 2.5 million tonnes per annum with Gazprom Marketing and Trading Ltd., Singapore for 20 years.

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