SOCAR Signs MoU with India’s GAIL

Azerbaijan’s SOCAR signed a Memorandum of Understanding with India’s GAIL for join investments in petrochemical projects, with an eye on LNG opportunities. 

‘Under the MOU, SOCAR and GAIL intend to pursue jointly LNG opportunities through capacity booking, LNG procurement and promotion of LNG projects. Both companies shall also cooperate in optimization of LNG marketing, sourcing and shipping requirements. Besides, SOCAR and GAIL will pursue business opportunities in upstream assets across the world and joint investment in petrochemical projects,’ reads the note released by SOCAR on Tuesday. 

The parts did not disclose the financial details of the deal.

GAIL is leader in India’s natural gas market with a wide range of assets, with a recent 20-year Sales and Purchase Agreement signed with a unit of Cherniere Energy Partners for 3.5 million tonnes of LNG per year. 

The deal signals the intention of Azerbaijan to promote a diversification of costumers, in line with decisions recently taken by Russia and Iran.