Indian Gail Ltd. signs contract to purchase American shale gas

LNG tanks at sunrise
Source: DollarPhotoClub

Indian company Gail Ltd. has signed an agreement to purchase U.S. shale gas. The gas will be sourced from eastern Ohio’s Utica fields and southwestern Pennsylvania’s and northern West Virginia’s Marcellus fields.

The agreement, approved by The Federal Energy Regulatory Commission in September, will see Gail buying between 3.4 million and 4.3 million cubic feet of natural gas, over the next 20 years, from the midstream subsidiary of Washington, D.C.-based WGL Holdings Inc.

The gas will be sourced through an existing agreement between WGL Midstream subsidiary and Antero Resources to be piped to Dominion’s Cove Point export facility where it will be liquefied and shipped overseas. The contract will commence as soon as the liquefaction facility is completed in 2017.

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