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India’s received it’s first LNG Cargo from the US under a long-term contract of GAIL (India) Ltd on Friday. A GAIL statement said the cargo was received at Dabhol.
“Commencement of LNG supplies under the Henry Hub indexed contracts is significant for GAIL and the Indian markets as well,” the statement added.
Speaking on the event, Minister for Petroleum and Natural Gas, Dharmendra Pradhan, said: “The arrival of the first LNG cargo from the US was a significant milestone in the direction of realising adequate availability of natural gas through imports from diversified sources. A shift towards a gas based economy would require augmenting domestic production as well as imports.”
Adequate investments in natural gas infrastructure including pipeline, LNG import terminal and City Gas Distribution network is also a focus area for the government, he added.
GAIL will have a portfolio mix of LNG indexed to Henry Hub (HH) and crude oil. GAIL has 5.8 millIon tonne per annum (MTPA) of US LNG in its portfolio. GAIL shall be receiving around 90 cargoes per annum from Sabine Pass and Cove Point LNG terminals.
The arrival of this LNG vessel comes close on the heels of formation of Konkan LNG Private Limited, a subsidiary of GAIL, which has recently been demerged from RGPPL.
India’s trade with US is expected to increase owing to large scale imports of LNG and crude oil in coming years. GAIL alone would be procuring approx. $2 billion worth of LNG per annum from US from financial year 2018-2019.
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