Shell eyeing Gail’s US LNG volumes

Gail of India has reportedly entered talks with Shell to sell LNG volumes sourced from the United States. 

Reuters cites sources saying Gail has already inked preliminary deals with more companies.

The Indian state-owned company revealed plans to sell 1 million tons per year in 2013. It planned to sell the volume over a period of five years. It had previously signed a supply deal with Cheniere for 3.5 mtpa of LNG over a period of 20 years.

Gail has also secured 2.3 mtpa liquefaction capacity in Dominion’s Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.

Gail already had a memorandum of understanding signed with Shell and according to sources the company’s offer was the best Gail received.

It is also said that despite Shell’s takeover of BG Group there will be no impact on its interest in Gail’s LNG volumes.

LNG World News Staff; Image: Shell