GAIL India to Swap US LNG to Save Transportation Cost
GAIL India will swap one-third of LNG it has contracted from the US with a gas seller nearer to the country to save on transportation costs. GAIL, in two deals, contracted 5.3 mt a year of super-cooled gas (LNG) from the US starting 2018. Of this, it reckons 3-3.5 mt will be shipped to India for consumption by local industries like power and fertiliser plants. “Transporting LNG in cryogenic ships from the US will not just be time-consuming, but will add a little extra to the cost, wiping away some of the gain accruing from a Henry Hub linked price for gas,” a senior company official said.