GAIL makes first global LNG purchase on its own

Mumbai, May 9: In a first ever purchase of LNG cargo from the international market on its own, the state owned gas transporter GAIL India has bought one spot cargo of 135,000 standard cubic meter from Algeria.

Announcing this to BSE, the company said the cargo is expected to arrive at the Dahej LNG receiving terminal in the third week of this month, while the company is in the process of finalizing a second cargo in June.

It will sell part of the LNG to companies facing natural gas supply crunch. High on the list will be power generation companies who are facing serious supply shortages in northern India which is in the grip of a heat wave. Recently the Central Electricity Authority has permitted the use of naphtha to meet the peak summer demand.

Currently the domestic price of naphtha is as high as US $ 20 per mmbtu equivalent of energy. The price of Algerian LNG will be a fraction of this price.

Having achieved this major breakthrough, the Company is confident to import more spot cargos in the near future and is in touch with LNG sellers in the Pacific Basin, Atlantic Basin and the Middle East for future imports.

UNI