India's GAIL Inks Two Huge US LNG Deals This Year

This year Indian firm GAIL (India) Ltd, has entered into a $60-billion deal with two US-based companies for bringing in close to six million tonnes of LNG every year over a 20-year period beginning 2016-17.

According to Hindustan Times the landed price of the gas in India will be close to $12 per million metric British thermal units (mmBtu).

The deal will help the company supply close to 23 million metric standard cubic metres of gas per day (mmscmd) beginning 2017 in the domestic market and benefit industries including power, fertilisers and others, currently facing acute shortage of natural gas, Hindustan Times said.

GAIL has contracted 3.5 million tonnes per annum (mtpa) of LNG from US based Cheniere Energy Partners for 20 years, company’s chairman and managing director BC Tripathi told the newspaper. The second 2.3-mtpa LNG deal has been signed with Dominion Energy from the latter's LNG plant in the US.

According to industry sources, this is perhaps the cheapest LNG that has been sourced so far for the domestic market.