GAIL Seeks Interest in Swapping Out U.S. LNG Supplies
State-run 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 tonne a year of liquefied natural gas (LNGLF) 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 tonnes a year of LNG to Royal Dutch Shell (RYDAF).
(Reporting by Nidhi Verma)
