India’s gas utility GAIL has reportedly signed a time-swap deal with Swiss trading giant Gunvor that includes its U.S. LNG volumes.
It was GAIL’s first such deal, as the company is looking to ease the pressure of the more expensive foreign LNG supplies.
Under the agreement, Gunvor will deliver 15 LNG cargoes to GAIL in the period between April and December this year, Reuters reports, citing sources.
The volumes of 0.8 million tons of LNG, which is equal to 5 percent India’s 2015/2016 imports.
In return, GAIL agreed to deliver 10 cargoes from Cheniere’s Sabine Pass LNG in 2018 to Gunvor on a free-on-board basis. In 2011. GAIL agreed to buy up to 3.5 million ton per year from Sabine Pass LNG export project for a period of 20 years.
In addition to the 0.6 million tons, GAIL will deliver to Gunvor under the agreement, the company is looking to sell additional volumes from its U.S. portfolio.
LNG World News Staff