GAIL likely to open LNG trading desk in Singapore

State-owned gas utility GAIL (India) is likely to open a liquefied natural gas (LNG) trading desk in Singapore next week to source fuel for meeting the growing energy demand of the country.

“GAIL is actively scouting for LNG from various sources for both its long-term as well as short-term requirement. In this regard, GAIL plans to set up a LNG trading desk responsible for sourcing LNG as well as trading on LNG for arbitrages,” said a source privy to the development.

GAIL (India) Chairman and Managing Director, Mr B.C. Tripathi, is scheduled to travel to Singapore next week to open the trading desk.

Besides identifying potential LNG suppliers for long-term, short-term and spot supplies, and undertaking commercial negotiation for LNG supplies, the desk would also look at logistics and shipping requirements for moving LNG to India.

Besides, it would enter into price and supply hedging, and would develop a model for long-term, medium-term and short-term sales purchase agreements.

Also, it would trade LNG quantities for arbitrages in India and abroad, the source said.

GAIL (India) is India’s largest gas marketing, transmission and distribution company. It is the principal marketer for the LNG that Petronet LNG imports at Dahej terminal in Gujarat.

In addition, the company is a promoter of Ratnagiri Gas and Power Ltd (Dabhol) that owns a near — complete five million tonnes a year import facility on the Maharasthra coast.

Besides having rights for three mt per annum of the import capacity at RGPPL, the company is also the agency designated for sourcing LNG requirement for the Ratnagiri LNG Terminal.

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