India’s Gail in Cove Point LNG cargo swaps
State-run gas company GAIL (India) Ltd is reportedly proposing to swap three US liquefied natural gas (LNG) cargoes across the first quarter of next year.
The Indian importer has 20-year deals to buy 5.8 million tonnes per annum of U.S. LNG in total, split between Dominion Cove Point and Cheniere Energy’s Sabine Pass facility.
Under the proposed swap, Gail would sell its share of output from U.S. LNG plant Cove Point in return for taking delivery of LNG into India, Reuters reported on Friday citing trade sources.
Gail is offering a cargo a month from Cove Point for loading in the first quarter of next year. Participants must submit offers by December 3, the report said.
Gail has already previously signed time-swap deals with international players to sell some of its previously contracted U.S. LNG supplies as it was trying to reduce costs for price-sensitive Indian customers.
LNG World News Staff