GAIL India Sells 2 mt US LNG Overseas

GAIL India Ltd has sold two million tons of LNG from its US portfolio overseas, company’s Chairman B C Tripathi said Wednesday, reported Press Trust of India.

Out of the two million tonnes of LNG, one million tonne has been sold to Royal Dutch Shell. Tripathi refused to give details of other buyers.

The state owned company has signed a 20 year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners for supply of 3.5 million tons per year of LNG. The company also signed a terminal service agreement for 2.3 million tons per year of LNG liquefaction capacity with Dominion Cove Point LNG. Cheniere is expected to start production early 2018. 

The landed price of US LNG in India is not likely to be less than $10 per million British thermal unit, a rate that domestic industry may consider high after adding taxes, transportation charges and margins, Press Trust said.