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GAIL seeks interest in swapping out U.S. LNG supplies
GAIL (India) Ltd has been seeking to swap some of its contracted gas supplies from Sabine Pass Liquefaction in the United States to reduce shipping costs. GAIL has a contract to buy 3.5 million ton a year of liquefied natural gas from Sabine Pass on a FOB basis for 20 years. The supplies are expected to begin from the first quarter of 2018, a document posted on the company’s website showed.
The Indian firm wants to swap LNG on a FOB basis with firms that have customers in countries in which LNG trade is not prohibited by US law and sanctions. In exchange GAIL is seeking equivalent supplies on a delivered basis at Indian regasification terminals at Dahej and Dabhol in western India. Trade sources last year told Reuters that GAIL has sold at least 0.5 million tons a year of LNG to Royal Dutch Shell.
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