GAIL goes for on board LNG regasification

New Delhi, November 9, 2005: GAIL (India) Limited has signed a Memorandum of Agreement (MoA) with EXMAR Marine NV, Belgium to cooperate for jointly pursuing projects using EXMAR’s on-board LNG regasification technology for import of LNG and to utilise EXMAR’s logistic expertise for jointly pursuing transportation of CNG by ship.

The Agreement was signed today by Mr. Proshanto Banerjee, Chairman and Managing Director, GAIL and Mr. Nicolas Saverys, CEO, EXMAR in presence of Shri Mani Shankar Aiyar, Hon’ble Minister of Petroleum and Natural Gas, Government of India and Mr. Patrick De Beyter, Ambassador of Belgium to India.

EXMAR has developed a new application “LNGRV” for the transportation and regassification of LNG, consisting of a standard LNG carrier that whilst retaining the ability to transport as a conventional vessel, has been modified to be able to also regassify LNG and to discharge regassified LNG in various modes. This technology is currently in operation at the world’s first off shore LNG Terminal at the “Gulf Gateway” operated by Excelerate Energy.

Under this MOA, GAIL and EXMAR shall evaluate the merits including technical, operational and commercial aspects of conventional LNG transportation versus LNGRV for the transportation and regasification of LNG, and / or transportation of CNG that can be implemented to serve the LNG / CNG import projects.

GAIL is involved in the import and regassification of Liquefied Natural Gas (LNG), through its shareholding in a joint venture company Petronet LNG Ltd. (PLL), which has secured LNG supplies from Qatar to India and is responsible for the development of regassification facilities at Dahej in Gujarat and Kochi in Kerala. GAIL is also involved in sourcing LNG and its regasification at RGPPL, Dabhol.

EXMAR is a leading, independent, worldwide shipping company, specialized in the marine transportation of gases. Its experience, know-how and excellent past track record over the last 30 years in the LNG and LPG markets particularly with respect to the construction and operation of LNG, LPG, NH3 and crude carriers and Floating Production and Offloading units, have made it a reliable gas shipping and logistics partner to the oil and gas industry.

In view of India’s future energy requirements, GAIL plans to import further quantities of LNG into India and develop and construct additional LNG receiving and regassification facilities and to that effect GAIL desires to cooperate with EXMAR by using the EXMAR Technologies or any other service EXMAR is in a position to provide with respect to the transportation, storage and regassification of LNG or Compressed Natural Gas (CNG) (the LNG / CNG Logistical Services) in India or elsewhere in the world.

The two companies will cooperate on certain specific LNG or CNG import projects for India and share each other’s expertise and know-how with respect to gas / CNG / LNG procurement, distribution, transportation, storage and regassification with a view to jointly develop one or more LNG / CNG import projects into India. The two companies shall establish a Joint Steering Committee, which shall coordinate the activities of the Parties. GAIL and EXMAR would create a joint venture company in the event it is decided to proceed with a project. In the mean time, GAIL is commissioning feasibility study for application of ‘LNGRV’ at Hazira in Gujarat, Krishnapattinam in Andhra Pradesh and Kerawalapitiya in Sri Lanka.