GAIL’s LNG Contract with Sabine Pass; first shipment bound for India flagged off from Sabine Pass by C&MD GAIL
Posted: 05 Mar 2018 08:58 PM PST
Mr. B C Tripathi, Chairman & Managing Director, GAIL flagged off GAIL’s first USA sourced LNG cargo from Sabine Pass LNG export facility in Louisiana on 5th March 2018. The cargo has been loaded on-board GAIL’s first chartered LNG ship “Meridian Spirit”. This LNG cargo originated from Cheniere Energy’s LNG export facility at Sabine Pass LNG project. The cargo will discharge LNG at Dabhol terminal of GAIL on or around 28th of this month.
The ship set sail after a ceremony to mark the occasion at Sabine Pass in the presence of Cheniere CEO Mr. Jack Fusco and GAIL Chairman and Managing Director Mr. B. C. Tripathi, who were joined by Consul General of India in Houston, Dr Anupam Ray, as well as representatives from Cheniere and GAIL.
The LNG SPA, which was signed in December of 2011, commenced on March 1, 2018. Under the terms of the SPA, GAIL would purchase approximately 3.5 million tonnes of LNG per year from Sabine Pass.
“The commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL,” said Mr. Fusco. “GAIL is one of the foundation customers of Cheniere having signed the contract in 2011 and India remains an important market for LNG, and one that we hope will continue to show signs of growth. We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India. ”
“With supplies commencing from the US, GAIL will have a diversified portfolio both on price indexation and geographical locations,” said Mr. Tripathi. “This long-term agreement would go in a long way in strengthening the relationship between GAIL and Cheniere and reinforcing India-US trade ties,” he added.
GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, Petrochemicals, City Gas, E&P, etc. GAIL is expanding pipeline network by about 5000 kms. at an investment of over $ 3 billion to operate over 16,000 kms by 2020. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. It also has a growing international presence through subsidiaries in the USA and Singapore. It is also planning to invest over a billion dollars into its City Gas Distribution projects.
Commencement of LNG supplies from Sabine Pass are significant under the contract for India as it shall immensely support Hon’ble Prime Minister’s vision of taking India towards a gas-based economy and expanding Natural Gas footprints in our economy.