Gail In Three Time-Swap Deal For US LNG
NEW DELHI: State-owned utility GAIL India has signed three time-swap deals to sell some of its US liquefied natural gas (LNG) as it rejigs the supply portfolio in line with domestic demand.
Under the deals, the company will buy LNG from international companies this year and sell equivalent amount of Henry Hub-indexed volumes during 2018-19, GAIL said in its Annual Report. It is also seeking destination swaps to cut shipping costs of US LNG. GAIL has a deal to buy 3.5 million tonnes a year of LNG for 20 years from Cheniere Energy of US and has also booked capacity for another 2.3 million tonnes at Dominion Energy’s Cove Point liquefaction plant. The company said it had contracted LNG from US to meet the demand of growing Indian economy with power sector being considered as a major buyer.