GAIL India Sells LNG From US Portfolio to Shell

GAIL India has sold some LNG from its US portfolio to Royal Dutch Shell, according to Indian financial daily Economic Times.

The Indian firm has signed a 20 year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners for supply of 3.5 million tons per year of LNG. The company also signed a terminal service agreement for 2.3 million tons per year of LNG liquefaction capacity with Dominion Cove Point LNG. Cheniere is expected to start production early 2018. 

GAIL’s head BC Tripathi did not give details about the deal with Shell but the newspaper, citing trade sources, said the company has sold at least 0.5 mtpa LNG to the Anglo-Dutch energy firm.

Tripathi said GAIL would also issue an LNG swap tender in two months to cut transport costs for supplies to India, adding 0.5 million tonnes of its US LNG has already been booked by local clients while talks were ongoing with domestic and foreign firms for more such deals, Economic Times reported.

GAIL was keen to swap about 2 mtpa of its LNG, Tripathi had said in January 2014, according to the newspaper.