GAIL Plans to Buy More LNG Spot Cargoes

Wednesday, August 02, 2006
State-owned GAIL (India) Ltd. is planning to import 10 more cargoes of liquefied natural gas (LNG) following its success in selling the entire stock of the first shipment imported in May and sold to domestic industries after regassification. The company is in talks with Qatar, Oman, Egypt, Malaysia, Australia and Abu Dhabi in the United Arab Emirates (UAE) for spot purchases. Normally, countries inform one month in advance if any LNG cargo of three trillion British thermal unit (Btu), or equivalent of 80 million standard cubic meters (MMSCM) of natural gas, is likely to become available. On the basis of competitive bids, the spot cargo is sold. The spot cargo at $7.5-$9.3 delivered price is much higher than the long-term contracts India and other import dependent countries are negotiating. After adding various taxes and other costs, it translates into a delivered price of $11.64 per mmBtu if sold outside Gujarat and $12.04 per mmBtu if sold within Gujarat, Hindustan Times reported. GAIL does not see spot cargo model sustaining as a long term model, but as a short-term solution since the availability of LNG cargo and price of such purchases are risky. Referring to Ratnagiri Gas and Power Ltd., formerly known as Dabhol power project, GAIL said LNG supplies are set to begin in March 2007 as against earlier plans of beginning imports from January. The delay in completion of the pipeline from Dahej to Ratnagiri is cited as the reason for postponement of gas supplies from Qatar, which has agreed to supply additional 1.2 million tons of LNG on short term basis in addition to five million tons it is already supplying Petronet LNG under a long-term contract. The price of the additional 1.2 million tons LNG is expected to be finalized this week with a team from Qatar's RasGas expected in New Delhi. (Source: Hindustan Times)
Maritime Reporter August 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

VT Halter to Build Bouchard ATB Tugs

VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems), today announced new contracts to build two 130-foot Articulated Tug Barge

Del Mar Signs Agency Agreement with Ciramar

Del Mar Marine Corp. announced it has signed an agency agreement with Ciramar Shipyards allowing the company to promote Ciramar Shipyard´s docking and facilities

Great Lakes Shipyard Wins EPA Drydock Contract

Great Lakes Shipyard has been awarded a contract for the United States Environmental Protection Agency (EPA) vessel R/V Lake Explorer II. The scope of work will include drydocking,

LNG

Bill Promotes US LNG Vessel Transport

Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, introduced H.

Korea Shipbuilder Wins US$400-M Greek Order

Daewoo Shipbuilding & Marine Engineering Co., South Korea’s second-largest shipbuilder, says it has signed a contract to build 4 tankships for Maran Tankers Management,

US DOE Approves Oregon LNG Export Project

The U.S. Energy Department said on Thursday it has approved Oregon LNG to export liquefied natural gas, as the Obama administration works through applications to

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1056 sec (9 req/sec)