India's biggest gas marketer Gail India said the long-term gas import contract with Australia's Gorgon project for about $15.67 per unit price is too high and does not reflect market reality, prompting the state firm to ask the importer, Petronet LNG (PLL), to renegotiate the contract. Gail's statement follows demands from some energy firms for import-parity price for domestically produced natural gas. These firms criticised the recently approved pricing formula propounded by the the Rangarajan
Tag: GAIL India
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GAIL may import LNG at a landed cost of $10.5 per unit
According to sources from union oil ministry, the landed cost of the liquefied natural gas (LNG) to be sourced by the state-owned gas utility GAIL India from the US would be around $10.5 per mmBtu, based on the current Henry Hub price. Gas at US Henry, LA is currently traded at around $3.78 er mmBtu. In December 2011, GAIL entered into a pact with Houston-based Cheniere's Sabine Pass LNG terminal in w
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Price of GAIL’s gas import to depend on Henry Hub
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 s
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Shipping Corp struggles to improve its financials
To improve its financial status, the Shipping Corporation of India (SCI) has signed several MoUs with its public sector undertaking peers such as Coal India, ONGC, SAIL and Gail India. SCI has been striving to take advantage of the pacts. For now, its financials continue to be under stress. SCI is yet to form joint ventures with Coal India and Oil and Natural Gas Corporation which could have provided the firm with assured cargo and revenues. SCI has not acquired vessels yet for operation as per
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GAIL to strengthen LNG trading segment
Public sector firm Gail wants to strengthen its liquefied natural gas (LNG) trading business as it may reduce the dependence of the company's earnings on the uncertain transmission segment. BC Tripathi, Chairman and Managing Director of the company said this in an analyst call. The trading segment of the company involves import of LNG cargoes into the country and then selling them in the spot
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GAIL’s Kochi LNG terminal by July
GAIL India plans to commission its Kochi liquefied natural gas (LNG) terminal in July. Initially, the terminal was about 2.5 million tonne (mt) capacity and the pipelines were to be laid within Kerala only,
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GAIL India to operate LNG carriers
GAIL (India) plans to have seven or eight liquefied natural gas (LNG) in the next three to four years on a long-term charter or ownership basis in order to ferry the fuel to India from abroad. From 2017, the company plans to enter the LNG shipping business as it would enable the firm transport the fuel it agreed to buy from the USA
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Consumers prefer local gas due to high cost of imported gas
Even as several power and fertiliser plants are suffering from insufficient availability of natural gas, they are averse to buy imported gas because of its unacceptably high price. Natural gas-based power producers want a larger share of the domestically-produced cheaper gas, which is priced between $4.2 (RIL's D6 gas) and $5.73 per unit, which is far less than the price of imported gas in the s
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GAIL studies impact of tariff order
GAIL India is studying the impact of the recent tariff order by the Petroleum and Natural Gas Regulatory Board (PNGRB) on its financial position. Some reports indicate that the May 10 order of PNGRB may cause Rs 500 crore loss for the company. In its order, the downstream regulator retrospectively reduced the tariff charged by GAIL for its Krishna Goda
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Kerala govt wants centre to introduce CGD in Kochi
Kerala Chief Minister Oommen Chandy asked the union petroleum ministry to fast-track the implementation of the City Gas Distribution (CGD) project in Kochi. Recently, Chandy asked the union oil Minister Veerapa Moily to take proactive steps to realise the CGD project. In the letter, Chandy ensured his government’s “support including single window clearance for the realisation of the projec