April 20, 2016 / 1:42 PM / 4 years ago

GAIL seeks interest in swapping out U.S. LNG supplies

NEW DELHI, April 20 (Reuters) - State-run GAIL (India) Ltd has been seeking to swap some of its contracted gas supplies from Sabine Pass Liquefaction in the United States to reduce shipping costs.

GAIL has a contract to buy 3.5 million tonne a year of liquefied natural gas from Sabine Pass on a FOB basis for 20 years. The supplies are expected to begin from the first quarter of 2018, a document posted on the company’s website showed.

The Indian firm wants to swap LNG on a FOB basis with firms that have customers in countries in which LNG trade is not prohibited by US law and sanctions.

In exchange GAIL is seeking equivalent supplies on a delivered basis at Indian regasification terminals at Dahej and Dabhol in western India.

Trade sources last year told Reuters that GAIL has sold at least 0.5 million tonnes a year of LNG to Royal Dutch Shell. (Reporting by Nidhi Verma; Editing by Greg Mahlich)

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