The price of the shale gas that would be imported by state-run gas transportation firm GAIL India from the US starting 2016-17 would depend on Henry Hub prices to which shale gas price is linked.
This price may most probably be around $10-11/mmBtu, media reports indicate.
It may be recalled that GAIL India entered into an agreement with Cheniere Energy Partners to import 3.5 million tonne per annum (mn tpa) of LNG from the US starting 2017-18.
GAIL has also booked a 20-year terminal service agreement with Dominion Resources for supplying 2.3 mn tpa of shale gas from 2017. Apart from this, the company acquired a 20 percent interest in CarrizoÂ’s Eagle Ford Shale acreage which is currently under development.
GAIL would be the first Indian company to import shale gas after receiving a waiver from the US department of energy, whose permission is needed for oil and gas exports to countries that donÂ’t have a free trade pact with the US.
The firm recently received a strong response to its expression of interest (EOI) for supplying natural gas at $13.25-13.50 per mmBtu starting 2016-17.
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