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 September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


MECNW Appoints New CEO

Terry Weston has been confirmed as Chief Executive of Maritime and Engineering College North West (MECNW) following the retirement of his predecessor, Jim Teasdale, at the end of September.

MacGregor's Deck Machinery for Sentinel Marine ERRV

MacGregor, part of Cargotec, will supply deck machinery for a new 65m emergency rescue & response vessel (ERRV) for Sentinel Marine. The ship has been designed

Maersk to Install Inmarsat's Entertainment Service

The leading provider of global mobile satellite communications services, today announced that Maersk Tankers, the owner and operator of one of the world’s largest fleets of product tankers,


Finland Scraps LNG Terminal Plan

Finnish gas utility Gasum has abandoned its plans to build the Finngulf liquefied natural gas  (LNG) import terminal in Finland with an offshore pipeline connection

MARAD Backs Emissions Reduction Projects

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced it will provide more than $1 million to support the development of two new emission-reducing maritime solutions.

Becker Marine, Kotug Sign MOU for LNG Hybrid Barge

Press release - Becker Marine Systems and KOTUG signed a Memorandum of Understanding to launch a LNG Hybrid Barge in the Port of Rotterdam with effect from June 2017.

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | 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: 0.1367 sec (7 req/sec)