Coal News We love to talk!
GAIL (India) Ltd has sold some of its liquefied natural gas (LNG) from the US portfolio to European energy major Royal Dutch Shell ahead of production from early 2018, its head BC Tripathi said on Wednesday.
GAIL has a deal to buy 3.5 million tonnes per annum (mtpa) of LNG for 20 years from US-based Cheniere Energy and has also booked capacity for another 2.3 mtpa at Dominion Energy's Cove Point liquefaction plant.
Tripathi refused to elaborate on the volumes, pricing and duration of the deal with Shell but a trade source said GAIL has sold at least 0.5 mtpa LNG to Shell.
GAIL would also issue an LNG swap tender in two months to cut transport costs for supplies to India, he said, adding 0.5 million tonnes of its US LNG has already been booked by local clients while talks were ongoing with domestic and foreign firms for more such deals.
GAIL was keen to swap about 2 mtpa of its LNG, Tripathi had said in January 2014.
India's gas demand is set to rise as the federal government has approved policies to boost power and fertiliser production using imported gas.
Gas demand in the world's second most populous nation however declined in the quarter ending in April as alternative fuel like furnace oil turned cheaper due to rout in global oil markets.
Also prices of gas sourced under a long-term deal with Qatar have turned costly tapering the demand for the cleaner fuel.
He said India has used a 10 percent reduction permissible under a 25-year contract with Qatar's RasGas to import up to 7.5 mtpa the super cooled fuel.
This is the first time India has exercised its right to lift less volumes since the start of contract in 2004. GAIL has rights to sell about 60 percent of the gas volumes sourced under the long-term deal with Qatar.
- Indias petroleum import bill rose 9 per cent last fiscal, import dependency of crude rises to 82 percent Read more
- New India Assurance bags RIL's Rs 500-crore combined cover Read more
- MFL to use cryogenic tankers to transport natural gas from Krishnapatam Port, India Read more
- Consumers to get 20 Watt LED tube lights at Rs 230: Piyush Goyal Read more
- IL&FS; bags $1-billion funding from Industrial & Commercial Bank of China Read more
- Delhi's power subsidy policy helps rich more than poor Read more
- Govt working to eliminate coal import: Goyal Read more
- NTPC ties up with German bodies for research in solar energy Read more
- France agrees with Modis stand on role of N-energy in climate change Read more
- ONGC Videsh eyes energy assets in US; Oil India close to buying Africa asset Read more