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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

LNG

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Fredriksen eyes Takeover of Flex LNG

Shipping tycoon John Fredriksen is aiming to take control of Oslo-listed Flex LNG following his purchase of 12.7 million shares that brought his stake in the firm to 43.

Technip & Fluor Bag RAPID UIO Project

Technip, in a joint venture with Fluor, was awarded an engineering, procurement and construction management contract by PRPC Utilities and Facilities Sdn. Bhd.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.6068 sec (2 req/sec)