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Publish Date : 29-Apr-2013

The Minister of State for Petroleum & Natural Gas Smt. Panabaaka Lakshmi informed the Lok Sabha in a written reply today that GAIL (India) Limited has recently signed a Terminal Service Agreement with Dominion Cove Point LNG, LP through GAIL Global (USA) LNGLLC for booking 2.3MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland, USA. Construction work is expected to start in 2014 and the liquefaction facilities are expected by 2017. The Minister elaborated that while Dominion Cove has federal approval to export gas to countries having Free Trade Agreement with the US, it has applied for Non- FTA approval for export to countries like India which do not have such agreements in place.

As per the agreement, Smt Laksmi said, GAIL will procure its own natural gas and deliver for liquefaction at the terminal. Thereafter, LNG would be loaded into the ships arranged by GAIL. GAIL would be paying service charges to Dominion Cove for liquefaction of natural gas. Regarding pricing, she informed that the liquefaction charges would be one of the components in the final delivered LNG price to India. Other components would be purchase price of natural gas, transportation charges for delivery of gas to the LNG terminal, shipping charges etc.

Indian companies that have acquired upstream gas assets abroad include OVL, GAIL, OIL, IOCL, BPRL, GSPC, RIL and Essar.

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