GAIL has signed a memorandum of understanding (MoU) with Chubu Electric Power, Japan (Chubu) on Mar. 21, 2014.

Under the MoU, GAIL and Chubu shall mainly explore possibilities for collaboration in the area of joint LNG procurement. Besides, the two companies will also seek to collaborate on shipping optimization.

BC Tripathi, chairman and managing director, GAIL said, the enormous  potential for gas demand in Asia and said that despite being the largest importer of LNG, Asian market is paying premium for LNG.

Shares of the company gained Rs 17, or 4.81%, to settle at Rs 370.35. The total volume of shares traded was 155,064 at the BSE (Monday).