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 ton 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 tons a year of LNG to Royal Dutch Shell.