Cheniere Flags Off First Gail Cargo

Cheniere Energy and Indian Gail kicked off their 20-year deal March 5 at a flagging-off ceremony at Sabine Pass, Louisiana. The US company will supply about 3.5mn mt/yr of LNG to India’s biggest gas marketing firm under a deal signed December 2011.

The ceremony, with the Meridian Spirit carrying the maiden cargo, was attended by Gail managing director BC Tripathi and Cheniere CEO Jack Fusco along with the Indian council general in Houston Anupam Ray, as well as representatives from Cheniere and Gail, Cheniere said March 5.

“The commencementof this agreement marks the start of a long and productive relationship between Cheniere and Gail,” said Fusco. “India remains an important market for LNG, and one that we hope will continue to show signs of growth. We look forward to decades of mutually beneficial cooperation between Cheniere and Gail, the leading natural gas company of India.”

“Gail is one of the foundation customers of Cheniere having signed the contract in 2011. With supplies commencing from the US, Gail will have a diversified portfolio both on price indexation and geographical locations,” said Tripathi. “This long-term agreement would go a long way in strengthening the relationship between Gail and Cheniere and reinforcing India-US trade ties,” he added.

Indian oil minister Dharmendra Pradhan in December 2017 said that India was renegotiating contracts with US suppliers but one US company later denied any such development.  

Gail cargo loading Cheniere’s Sabine Pass liquefaction facility (Photo: Cheniere)