According to Reuters, GAIL (India) Ltd is reportedly trying to swap some of its contracted gas supplies from the Sabine Pass LNG facility in the US, in order to decrease shipping costs. GAIL is currently under contract to purchase 3.5 million tpy of LNG for 20 years from the facility on a Free On Board (FOB) basis. Reportedly, supplies are believed to commence in 1Q18.
GAIL is seeking to exchange LNG on an FOB basis with companies that have customers in countries where US law and sanctions do not prevent the trade of LNG. In exchange, the company is looking for equivalent supplies of the fuel on a delivered basis at two LNG regasification terminals, which are located in Dahej and Dabhol in Western India.
Edited from various sources by David Rowlands
Read the article online at: https://www.lngindustry.com/regasification/21042016/gail-seeks-to-swap-us-lng-supplies-2330/