GAIL floats LNG cargo swap tender

State-run gas company GAIL India has reportedly offered a couple of liquefied natural gas cargoes loading from Dominion’s Cove Point facility in Maryland. 

Citing industry sources, Reuters reports the two cargoes are to be loaded in August and November and will be sold on a free-on-board (FOB) basis.

The $4 billion Cove Point facility, with a nameplate capacity of 5.25 mtpa, began producing LNG in March last year with the facility shipping its first commercial cargo the following month.

GAIL has booked a total of 5.8 million tons of U.S. LNG per year on long term deals with Cheniere and Dominion from their respective Sabine Pass and Cove Point natural gas liquefaction and export projects.

However, due to the price-sensitive India’s market, the company has been forced to seek swap deals.

In addition, GAIL is looking to purchase a liquefied natural gas cargo for delivery to the Dahej LNG terminal in late December on a delivered-ex-ship (DES) basis.

The tender for this swap deal is closing on July 3.

LNG World News Staff