You are here: Home » Reuters » News
Business Standard

GAIL says LNG supply from Gazprom will start from May

Reuters  |  NEW DELHI 

By Promit and Nidhi Verma

NEW DELHI (Reuters) - India's and developer plans to buy 0.5 million tonnes or eight cargoes of liquefied (LNG) from Russia's in 2018/19, its said.

"The cargoes will start coming from May," Tripathi told on Thursday at the International Energy Forum.

GAIL renegotiated the terms of a long-term 2.5 million tonnes per annum (mtpa) liquefied (LNG) purchase deal with Russia's in January.

This was the third such renegotiation by with LNG suppliers to make the imported fuel more affordable, using its position as one of the world's biggest to strike better bargains for its companies.

has also renegotiated long-term LNG deals with Qatar's and as spot prices declined substantially amid a supply glut that turned trading of the into a buyers' market.

GAIL is planning to get as much as 5 million tonnes of LNG from the as well, equivalent to about 80 cargoes throughout the fiscal year, Tripathi said.

He said half of the U.S. LNG cargoes could be swapped for shipments from other suppliers, depending on available terms.

"Swapping is a continuous process and we are doing it regularly. We have swapped three so far in this year," he said, although he added that GAIL did not expect to swap any of cargoes this year.

The much-delayed Kochi-Mangalore pipeline, which can open up a substantial latent demand in South India, will be ready by November, he said.

The pipeline will connect Petronet LNG's 5 million-tonne-per-year regasification terminal at Kochi in to demand centres in and around Mangalore, including a refinery run by and and Petrochemicals Ltd and fertiliser plants.

GAIL is also working on implementing a national that is aimed at connecting the under-served eastern part of the country to the rest of the nation.

"We are trying to implement a large portion of the by 2022/23. The 4,000 kilometres (2,500 miles) which GAIL is implementing today should be ready by December 2022," Tripathi said.

(Reporting by Promit and Nidhi Verma; Editing by and Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 13:31 IST
RECOMMENDED FOR YOU