India’s largest natural gas player, GAIL (India), which is set to buy US LNG linked to the Henry Hub index starting in four years, is offering to resell it at a fixed premium at Henry Hub (HH) prices, Prabhat Singh, who wrote for LNG Industry’s May edition, said.
The decision spurs a move towards what Singh belives will be cheaper gas at the US benchmark as opposed to the traditional oil-linked prices that most Asian buyers are contracted to. Singh said that the price Gail was offering had received a positive response among Indian buyers, the company having already signed term sheets with more than 100 customers.
GAIL has signed a supply contract with Cheniere’s Sabine Pass Liquefaction Project for 3.5 million tpa.
Read Prabhat Singh’s full discussion of GAIL’s activities and find out how the company intends to meet ever rising demand in Asia’s second most populous country.
Edited from various sources by Ted Monroe