Agencies, New Delhi
Gail (India) Limited’s (GAIL) Chairman and Managing Director BC Tripathi flagged off GAIL’s first USA sourced LNG cargo from Sabine Pass LNG export facility in Louisiana on Monday.With this shipment, Cheniere Energy marked the start of its 20-year contract to supply US-sourced liquefied natural gas to India.
The cargo has been loaded on-board GAIL’s first chartered LNG ship “Meridian Spirit”. This LNG cargo originated from Cheniere Energy’s LNG export facility at Sabine Pass LNG project.The cargo will discharge LNG at Dabhol terminal of GAIL on or around 28th of this month, a GAIL release said here on Tuesday.
The ship set sail after a ceremony to mark the occasion at Sabine Pass in the presence of Cheniere CEO Jack Fusco and GAIL CMD BC Tripathi, who were joined by Consul General of India in Houston, Anupam Ray, as well as representatives from Cheniere and GAIL.
The LNG SPA, which was signed in December of 2011, commenced on March 1, 2018. Under the terms of the SPA, GAIL would purchase approximately 3.5 million tonnes of LNG per year from Sabine Pass.
Mr. Fusco said the commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL.
“GAIL is one of the foundation customers of Cheniere having signed the contract in 2011 and India remains an important market for LNG, and one that we hope will continue to show signs of growth. We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India,” he said.
“With supplies commencing from US, GAIL will have a diversified portfolio both on price indexation and geographical locations,” Mr. Tripathi said. “This long term agreement would go in a long way in strengthening relationship between GAIL and Cheniere and reinforcing India-US trade ties,” he added.
Commencement of LNG supplies from Sabine Pass are significant under the contract for India as it is expected to immensely support government’s vision of taking India towards a gas based economy and expanding Natural Gas footprints in country’s economy.