India’s state-owned gas transportation utility GAIL will import 1.5 million mt of LNG via term contracts and buy 30-35 spot cargoes, totaling nearly 2 million mt, for fiscal 2014-2015 (April-March), stable from the previous fiscal year, Prabhat Singh, GAIL’s marketing director said Wednesday.
GAIL is keeping its term and spot volume for the upcoming fiscal year steady, as “we need to maintain our customers. We will, however, need more customers for the US gas, which is going to come in 2017-2018,” Singh said on the sidelines of the Petrotech-2014 oil and gas conference in New Delhi.
GAIL will be receiving 6 million mt/year from the US in 2017-2018 and the plan is to sell the entire volume to the domestic market. The company plans to trade 1 million mt/year of the US LNG via its Singapore office, but is hoping to sell that volume to the Indian market as well.
The utility has just started discussions with potential buyers for the US LNG it will receive and is prioritizing buyers from the fertilizer and power sectors. But, these companies “have been taking time,” Singh said, adding that they have been held back until recently due to policy decisions.
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