In­dia first in Asia to buy shale gas from US

Power Watch India - - DESPATCHES INTERNATIONAL -

In­dia has be­come the first country in Asia to buy US shale gas af­ter state-owned GAIL booked a ship of liq­ue­fied nat­u­ral gas (LNG) from Che­niere En­ergy Inc’s Sabine Pass plant in Louisiana. This would mark the start of US LNG ex­ports into In­dia, which last year over­took South Korea as the world’s sec­ond big­gest im­porter of the fuel on a spot and short-term ba­sis as buy­ers. The of­fi­cial said the de­liv­ered price of the US shale gas cargo is about USD 5 per mil­lion Bri­tish ther­mal units.

This will be the sec­ond ex­port cargo from Sabine Pass ter­mi­nal. The first batch of LNG from the ter­mi­nal was shipped to Brazil in Fe­bru­ary, mark­ing the start of US shale gas ex­ports. A third cargo of the gas is also set to go to Brazil.

Che­niere En­ergy plans to ship up to eight car­goes of LNG from Sabine Pass project by May.

GAIL had pre­vi­ously signed an agree­ment to buy 3.5 mil­lion tonnes of LNG a year for two decades from Sabine Pass. It has also booked 2.3 mil­lion tonnes a year ca­pac­ity in the Cove Point LNG liq­ue­fac­tion ter­mi­nal in Mary­land. The ship­ments are ex­pected to start in 2017 or 2018.

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