GAIL signs MoU for acquiring energy assets in north America
The MoU was signed on Feb 2 during the ongoing visit of Oil Minister M. Veerappa Moily to the US.
New Delhi: Gas utility GAIL (India) Ltd said Thursday it has signed a memorandum of understanding (MoU) with French energy trader EDF Trading to jointly acquire and develop oil and gas assets in north America and trading and optimisation of US gas and LNG.
The MoU was signed on Feb 2 during the ongoing visit of Oil Minister M. Veerappa Moily to the US, the company said in a statement here.
"The advent of shale gas in the US bodes very well for the global hydrocarbon landscape and this partnership is expected to look for business opportunities in this exciting space in order to enhance the oil and gas sourcing prospects for India," it quoted Moily as saying.
EDF Trading is one of the world's leading participants in the liquefied natural gas (LNG) market and offers a complete range of services including supply and delivery, terminal operations, re-gasification and nominations into networks.
"This is an important occasion for GAIL and we are happy to enter into this strategic relationship with EDFT, a major player in the US gas market. GAIL has extensive infrastructure in the mid-stream and downstream gas value chain and we are well positioned to meet the growing domestic demand in India," said GAIL chairman and managing director B.C. Tripathi.
GAIL has a 20 percent stake in Carrizo Oil's Eagle Shale gas assets in Texas, US and has also inked a deal to import 3.5 million tons of LNG from Cheniere Energy's upcoming Sabine Pass shale gas project in Louisiana, US.
"There are significant opportunities in the North American gas markets and we are pleased to be partnering with GAIL, one of the world's leading gas companies, in jointly developing this business," said John Rittenhouse, chief executive of EDF Trading.