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GAIL buys LNG cargo for USD 6.65 per mmBtu

Last Updated: Tuesday, December 1, 2009 - 16:43

New Delhi: State-run gas utility GAIL India
has bought an LNG cargo for USD 6.65 per mmBtu, about USD 2
million more than the rate at which Petronet LNG imported a
shipload just two days later.

GAIL imported a liquefied natural gas cargo from Repsol
of Spain on November 21, at a landed cost of USD 6.65 per
million British thermal unit, industry sources said.

Two days later, Petronet LNG Ltd, the nation`s largest
LNG importer, got a cargo from British energy giant BG Group
at a landed cost of USD 6 per mmBtu.

Sources said GAIL may have paid more than market price as
it bought the cargo from a company which is not a producer of
LNG. Repsol is a user of LNG and may have sold to GAIL a cargo
for which it could not find market back home.

This was GAIL`s first direct purchase of a cargo from spot
market since 2006 when it was barred by the Oil Ministry from
making direct purchases due to fear of it shelling out more
than the market price.

In November, Petronet imported one LNG cargo from Gaz de
France at USD 6.07 per mmBtu and in end-October it got a cargo
from Australia`s North West Shelf at USD 4.30 per mmBtu,
sources said.

GAIL imported the cargo at Petronet`s Dahej import
terminal in Gujarat. On the USD 6.65 import price, it paid an
import duty of 5 per cent and then a USD 0.60 per mmBtu to
Petronet for converting the liquid gas into its original
gaseous state (called regassification).


First Published: Tuesday, December 1, 2009 - 16:43
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