India’s GAIL and Shell ink LNG pact

India’s largest gas utility GAIL and LNG giant Shell are joining forces to collaborate in various fields, including LNG for road transport and regasification.

According to a statement issued on Friday, GAIL has signed a memorandum of understanding with Shell Energy India, a unit of Shell.

GAIL said in the statement this is “a step towards achieving improved sustenance in business operations.”

In a bid towards diversification of the feedstock for its petrochemical plant, GAIL is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure through water borne transportation to India and transport it further through its pipeline systems to demand centers, it said.

The memorandum envisages to explore prospects in import and handling of different hydrocarbons which are important chemical and petrochemical precursors, LNG for road transport, regasification of imported LNG, and renewables, the firm said.

GAIL holds a stake in India’s largest LNG importer, Petronet LNG, and buys volumes under long-term LNG deals from Qatar and the US, as well as from the spot market.

It also operates the 5 mtpa Dabhol LNG terminal in India.

The firm recently launched an expression of interest as it looks to buy a stake in a US liquefaction facility and to receive more US volumes.

On the other hand, Shell sold 65.98 million tonnes of LNG last year, a rise of 3 percent, while its liquefaction volumes reached 29.68 million tonnes.

Shell Energy India operates the 5 mtpa Hazira LNG import facility in Gujarat. Back in January 2021, it launched a truck loading unit at the facility.

Most Popular

Shell wraps up acquisition of Pavilion Energy

UK-based LNG giant Shell has completed its previously announced acquisition of Singapore's Pavilion Energy.

India’s ONGC approves Mozambique LNG investment

India’s state-run ONGC has approved an investment by its unit, ONGC Videsh, into the TotalEnergies-led Mozambique LNG joint venture, which is developing a 12.8 mtpa liquefaction plant at the Afungi complex.

Australia’s Viva Energy seeks FSRU for Geelong project

Australia’s Viva Energy is looking to secure a floating storage and regasification Unit (FSRU) for its proposed LNG import terminal in Geelong, Australia.

More News Like This

Shell wraps up acquisition of Pavilion Energy

UK-based LNG giant Shell has completed its previously announced acquisition of Singapore's Pavilion Energy.

Shell seals LNG deal with India’s IRM Energy

A unit of UK-based LNG giant Shell has signed a five-year deal to supply regasified LNG to India's IRM Energy.

China’s SIPG eyes LNG bunkering vessel order

China’s terminal operator, Shanghai International Port (SIPG), is looking to order one large liquefied natural gas (LNG) bunkering vessel, according to shipbuilding sources.

Shell CEO expects progress on Venture Global arbitration this year

Shell’s CEO Wael Sawan expects to have an update on an arbitration dispute with US LNG exporter Venture Global LNG later this year.