India’s GAIL reportedly sold at least 0.5 mtpa of LNG to Shell, from its U.S. portfolio.
The company’s Managing Director, B.C. Tripathi confirmed the deal to Reuters yet declined to comment on the volumes, the price or the duration of the contract.
GAIL secured 3.5 mtpa of LNG from Houston-based LNG player Cheniere for 20 years and booked 2.3 mtpa capacity at Dominion’s Cove Point liquefaction facility.
Sources claim that GAIL has sold at least 0.5 mtpa of LNG to Shell and the company also plans to issue an LNG swap tender that would help the country cut down on transport costs.
Tripathi added that 0.5 million tons of LNG from the company’s U.S. portfolio has already been snapped up by local customers. He added that GAIL is in talks with local and foreign companies to secure more similar deals.
It is predicted that India’s gas demand will rise as the government has given approval to the use of imported gas for energy and fertilizer production.
LNG World News Staff; Image: Shell