GAIL India is about to offer US LNG at a lower price from that of currently imported to India from Qatar.
According to Press Trust of India, GAIL plans to ressel the LNG it has agreed to buy from Cheniere’s Sabine Pass terminal in Louisiana to customers in India at prices tied to the US Henry Hub as an alternative to contracts linked to oil prices.
Price of the delivered gas at the Indian ports will be at $12 to $13 Btu, after the liquefaction process costs and shipping to India prices are added to the price of $4.7 per mmBtu.
Apart from the 3.5 million tons of LNG from Sabine Pass, GAIL has booked 2.3 million tons a year capacity in the Cove Point LNG liquefaction terminal at Lusby, Maryland.
LNG World News Staff, June 9, 2014; Image: GAIL