For bringing in close to six million tonne of liquefied natural gas or LNG every year over a 20-year period beginning 2016-17, GAIL (India) has entered into a $60-billion (about Rs 3.80 lakh crore) deal with two US-based companies. GAIL is the first Asian company to buy liquefied natural gas from the US.
Cheniere Energy Partners and Dominion Energy are the two US companies GAIL has tied up for the LNG deal.
Industry sources said that this is perhaps the cheapest LNG that has been sourced so far for Indian domestic market. It compares with close to $13 (Rs 829) per mmBtu that India will pay to RasGas of Qatar for buying 7.5 mtpa of LNG at a global oil price of $100.
Now GAIL is taking advantage of the lowest prices in 13 years to tie up LNG supplies from the US. GAIL said that the landed price of the gas in India will be close to $12 (about Rs 766) per million metric British thermal units (mmBtu).
The deal with the two US firms will help GAIL supply close to 23 million metric standard cubic metres of gas per day (mmscmd) beginning 2017 in the domestic market and benefit industries including power, fertilisers and others, currently facing acute shortage of natural gas.
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