GAIL today announced the signing of a Memorandum of Understanding (MOU) with Sumitomo Corporation, Japan.

Under the MoU, GAIL and Sumitomo will pursue business opportunities in natural gas and LNG value chain business globally, specially covering cooperation in petrochemicals, natural gas, procurement, pipelines and LNG.

GAIL and Sumitomo hold half of the capacity in the Cove Point LNG Liquefaction Terminal in the US respectively, and have also agreed to coordinate for ensuring smooth operations of the terminal. Both parties view US market as a growth area for their line of businesses and would cooperate on businesses ranging from upstream to downstream.

Shares of the company declined Rs 2.2, or 0.51%, to trade at Rs 425.70. The total volume of shares traded was 28,607 at the BSE (1.03 p.m., Monday).