GAIL In­dia to Swap US LNG to Save Trans­porta­tion Cost

The Economic Times - - Economy: Macro, Micro & More -

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.

NEW DELHI

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