GAIL buys LNG cargo from Shell, books two more

State-owned GAIL India has bought another liquefied natural gas (LNG) cargo from Royal Dutch Shell for $8.30 per million British thermal units and has booked two more for April and May.

Shell and its 26 per cent partner France-based Total yesterday imported a LNG cargo from Oman at its Hazira unit receiving terminal in Gujarat, industry sources said.

The cargo was imported at CIF or ex-ship price of $7.15 per mmBtu and the entire 80 million cubic meters of gas was sold to the monopoly gas marketer at $8.3 per mmBtu.

This is the second LNG cargo that GAIL has bought from Shell. It had in January bought most of the cargo that Shell had imported at Hazira after a gap of three months, for $11.70 per mmBtu.

 

The cargo was imported from North West Shelf project in Australia at a CIF price (rate including cost, insurance and freight) of $9.06 per mmBtu.

Sources said GAIL also bought two cargoes for April and May delivery from Shell at around $8 per mmBtu ex-terminal price, to meet the fuel deficit at steel plants and at tile and glass factories.

Before the January shipment, Shell and Total had last brought a ship into Hazira on October 13, from Trinidad and Tobago at $20.50 per mmBtu.

A company spokesperson could not be immediately reached for comments.