State-owned Gail (India) Ltd is offering up to 1 million tpa of its contracted US LNG through its wholly owned subsidiary Gail Global Singapore to buyers on an freight on board (FOB) basis, a source from Gail Global Singapore said on Wednesday.
The LNG will be sold on an FOB basis and deliveries are likely to begin in 2018, the source said. Volumes of LNG would come mainly from the Sabine Pass project, although Gail would be flexible about the loading terminal depending on the requirements of the buyer.
Interested parties need to submit a confidentiality agreement by 19 May, a statement released by Gail Global Singapore last week said. Gail Global Singapore planned to finalise the deal within two months from May 19, the source added.
The offer comes following remarks made last September by Gail's Chairman B C Tripathi, that the utility would trade 1 million tpa of US LNG from its Singapore offices, and import the remaining volumes into India.
Gail has offtake deals with Cheniere Energy and Dominion Cove Point for a total 5.8 million tpa of LNG on an FOB basis from the Sabine Pass and Cove Point liquefaction terminals. The deals are for 20 years.
"With 5.8 million tpa of portfolio […] any one would and should do geographical diversification," the source said.
Read more about GAIL’s LNG projects in the upcoming May issue of LNG Industry.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07052014/gail_global_singapore_to_sell_us_lng_on_fob_basis/