GAIL looking for U.S. LNG volume swaps

India’s GAIL is reportedly looking to swap some of the volumes contracted at Cheniere’s Sabine Pass export project in the United States in order to cut down the shipping costs.

The company is seeking to swap LNG volumes on free on board (FOB) basis with companies that have customers in countries with which the United States have a free trade agreement, Reuters reports.

In return, GAIL would be supplied equivalent volumes on a delivered ex-ship (DES) basis to regasification terminals at Dahej and Dabhol in India.

It was reported last year that GAIL agreed to sell volumes from its U.S. portfolio to Shell in the amount of 2 mtpa, while another 0.5 mtpa had been snapped up by the local customers.

GAIL secured 3.5 mtpa of LNG from Houston-based LNG player Cheniere for 20 years and booked 2.3 mtpa capacity at Dominion’s Cove Point liquefaction facility.

LNG World News Staff