GAIL (India) has allocated one million tonne a year of liquefied natural gas (LNG) sourced from the US to its subsidiary GAIL Global (Singapore) Pte in Singapore, which is a subsidiary of GAIL India in Singapore.
GAIL said in a statement that the allocated gas will be traded in the global market. In 2011, GAIL signed a long-term LNG sale and purchase agreement with Sabine Pass Liquefaction, LLC, US, for the supply of 3.5 mtpa LNG over 20 years, becoming the first Asian company to do so.
The supplies are expected to start from 2017-18. The supply agreement will follow the Henry-Hub price (the traded price in the US).
GAIL opened its Singapore office in 2011 through GGSPL to source natural gas, and trade in LNG and petrochemicals, among other things.
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