GAIL, GNF Sign LNG Deal

GAIL India has agreed to buy about 3 billion cubic metres of LNG from Spanish firm Gas Natural Fenosa, making this the second such deal within this week. Earlier this week the Indian state owned firm inked a LNG deal with France’s GDF Suez.

Business Line has said that GAIL would start getting supplies from the Spanish firm from January. Official sources told Business Line that the gas price been linked to Brent. The prevailing spot LNG price is between $13 and $14/mBtu (excluding charges for re-gasification, transmission, marketing margins, and taxes).

In addition to the supply agreement, GAIL and GNF have signed an industrial co-operation agreement for development of energy projects in India.