GAIL turns to short-term and spot deals for LNG to meet rising demand

Price-sensitive customers in the South Asian nation have already forced renegotiation of three long-term LNG deals

Indian gas utility GAIL (India) has switched its focus to short-term and spot deals for the purchase of liquefied natural gas (LNG) to meet rising demand and hedge against price volatility, its chairman said. The move from longer-term deals comes as India builds infrastructure, including pipelines and import facilities, to raise the share of gas in its energy mix to 15 per cent by 2030 from the current level of about 6.5 per cent.

“Today the market is moving from long-term (deals) to short term and spot. So we are buying short-term and are also looking at the swap (deals),”