Under the terms of the MOU, GAIL and Sumitomo will jointly pursue business opportunities in natural gas and LNG value chain business globally while focusing on cooperation in petrochemicals, natural gas procurement, pipelines and LNG.
GAIL (India) chairman and managing director Tripathi said: "This is an important occasion for GAIL and we are happy to enter into this strategic relationship with Sumitomo with whom we are long term partners in Cove Point project.
"There are significant opportunities in the North American gas markets and we are pleased to be partnering with Sumitomo in jointly developing this business."
GAIL and Sumitomo, which each hold half of the capacity in the Cove Point LNG Liquefaction Terminal, have also agreed to coordinate for ensuring smooth operation of the terminal.
