Under the 20-year definitive gas sale and purchase agreement, supplies are scheduled to start from late 2017 following commissioning of the LNG terminal, in which GGULL holds liquefaction capacity.
GAIL chairman and managing director Tripathi said: "This agreement is another milestone towards GAIL’s efforts in sourcing of LNG to meet the rising demand of gas in the Indian market."
WGL chairman and chief executive officer Terry McCallister said: "WGL Midstream’s long-term relationship with GAIL capitalizes on the growing supply of abundant natural gas from the Marcellus Shale production region.
"This growing supply source has been providing clean burning natural gas to Northeast and Mid-Atlantic regions of the United States and now will supply the country of India as well."
GAIL has signed a 20-year sales and purchase agreement for the supply of 3.5 million tons per year of LNG to Sabine Pass Liquefaction, a unit of Cheniere Energy Partners.
A terminal service agreement has also been signed by GAIL for 2.3 million tons per year of LNG liquefaction capacity with Dominion Cove Point LNG LP.
Image: GAIL signs agreement to buy natural gas. Photo: courtesy of Vichaya Kiatying-Angsulee/Freedigitalphotos.net
