India will receive its first LNG import from the U.S. later this month. The cargo from Cheniere Energy’s Sabine Pass LNG export facility in Louisiana was loaded on to GAIL’s chartered LNG ship ‘Meridian Spirit’ on March 5.
The sale purchase agreement was signed in December 2011 and the cargo is expected to discharge LNG at the Dabhol terminal of GAIL on or around March 28.
Under the terms of the agreement, GAIL would purchase approximately 3.5 million tonnes of LNG per year from Cheniere’s Sabine Pass.
“With supplies commencing from the U.S., GAIL will have a diversified portfolio both on price indexation and geographical locations.
This long-term pact would go a long way in strengthening ties between GAIL and Cheniere and reinforcing India-U.S. trade ties,” B.C. Tripathi, chairman & managing cirector, GAIL, said in a statement. GAIL, which commands 75% market share in gas transmission, is expanding pipeline network by about 5,000 km at an investment of more than $3 billion to operate more than 16,000 km by 2020.
‘Productive ties’
“The commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL,” Cheniere CEO Jack Fusco said. “GAIL is one of the foundation customers of Cheniere, having signed the contract in 2011 and India remains an important market for LNG.”
