State-run GAIL India Ltd has inked an agreement with national flag carrier, Shipping Corporation of India (SCI) for transportation of liquefied natural gas (LNG) from the US.
As per the terms of agreement, SCI will help the country's gas utility giant in the charter hiring of LNG ships to transport 5.8 million tons per year of LNG from Sabine Pass and Cove Point terminals in the US.
On the other hand, GAIL will assign step-in right to SCI in the ownership of LNG ships, the company said in a statement.
Commenting on the development, GAIL, Chairman and Managing Director, B C Tripathi said that LNG has become the company's important business vertical and the experience of SCI in the shipping business is likely to bring significant synergetic advantage for both the companies.
"We expect that this partnership will enable faster development of in-house fleet operations capabilities for the company," Tripathi stated.