GAIL Looks to Boost LNG Trading Business

Indian state owned firm GAIL wants to boost its liquefied natural gas (LNG) portfolio to 20 million tonnes a year in the next seven years through acquisitions and supply deals, chairman.B.C. Tripathi said.

In an interview to Reuters, Tripathi said that GAIL has detailed its long term LNG goals and business mix to capture the rising demand for the fuel.

The state owned firm has supply deals of nearly 15 million tonnes a year but is looking to sign up frsh deals to replace some which are expiring soon, Reuters said. "Overall (in its) portfolio, GAIL will have 20 million tonnes by 2020," said Tripathi, who has steered GAIL's transformation from its focus on domestic pipeline operations since he took the helm in August 2009.

Tripathi did not say how much GAIL will be spending to achieve its LNG ambitions but added that its trading team in Singapore will treble to six from the current two as of June, Reuters reported.

The company currently sells 6.5 million tonnes per annum (mtpa) of LNG locally, sourced from Qatar's Rasgas under a long-term contract and through small deals with GDF Suez and Spain's Gas Natural Fenosa (GNF) which end in 2015. From 2017, a 20-year deal with Russia's Gazprom to buy 2.5 mtpa LNG will commence.