GAIL (India) signed a memorandum of understanding (MoU) with Chubu Electric Power Co. Inc. of Japan at Gastech conference in South Korea on 24 March 2014. The MoU signed between the two companies will explore the possibilities for collaboration in the area of joint LNG procurement and other allied business opportunities.
The collaboration will enhance GAIL’s effort to increase the LNG volumes on competitive terms. It is a win-win proposition for both companies which will bridge the gap in demand and supply of natural gas in the Indian market.
The signing of MoU with Chubu are in addition to efforts that GAIL will be taking towards establishing a regional gas trading hub for Asia; constructing an Asian gas index; creating LNG re-gasification infrastructure; reserving liquefaction ringing capacity in overseas projects; and expanding transmission capacity.
The signing of MoU is also important from the viewpoint of Asian region. Asia has enormous potential for gas demand and there is a need for developing synergies among Asian countries through gas pipelines. The cooperation among the countries can be promoted by Asian Co-operation Forum to address Asian Gas and Asian LNG forum and Asia Hub or Index.
When: 24 March 2014