GAIL (India) Limited has allocated some volume of its US gas to the company’s global trading arm in Singapore.
In a statement issued here on Wednesday GAIL Chairman and Managing Director B C Tripathi, said that GAIL has allocated one million tonne per annum of liquefied natural gas volume to be sourced from the US to its subsidiary GAIL Global (Singapore) Pte. Ltd. (GGSPL). This volume will be traded in the global market.
GAIL was the first Asian company to have signed long-term LNG sales and purchase agreement with Sabine Pass Liquefaction, LLC, USA in 2011 for supply of 3.5 mtpa LNG over 20 years. The supplies are expected to start from 2017-18.
This supply agreement had price linkage with Henry-Hub price (the traded price in the US) instead of crude oil.
GAIL opened its Singapore office in 2011 through GGSPL for sourcing natural gas and for trading in LNG and petrochemicals, etc.
This experience of global trading would help to develop requisite skill sets and competence within the company and thereby expand the business in the global LNG market in a self-sustaining manner, he said.
The company also has a Terminal Service Agreement with Dominion Cove Point LNG LP for booking 2.3 million tonne per annum liquefaction capacity in the Cove Point liquefaction terminal in the US.
The US subsidiary of GAIL contracted half of Dominion’s capacity for 20 years.
GAIL also executed a long-term Gas Sale and Purchase Agreement with Gazprom Marketing and Trading Singapore Ltd. for supply of 2.5 MMTPA LNG per annum from its Shtokman production facilities over a period of 20 years.
The company has also signed a MoU with EDF Trading of the US for cooperation in the areas of North American upstream equity investments, gas supply to export facilities and LNG supply optimisation.
Tripathi has received the ‘Best LNG Executive Global Award’ for 2013 on November 19 at the 14th World LNG Summit being held in Paris.