Dabhol cargo for Argentina

Vol 15, PW 23 (31 May 12) News in Brief

Small consolation but GAIL needs to worry no longer about the LNG cargo turned away because of a mishap while commissioning the 5m t/y Dabhol LNG terminal in Maharashtra.

Argentina’s state-owned ENARSA in mid-May snapped up the commissioning cargo, sourced by US-based LNG trader Excelerate Gas Marketing through Statoil from the 4.3m t/y Snohvit LNG terminal in Norway. ENARSA bought the cargo for $17.60/mmbtu.

GAIL was meant to pay Excelerate around $15.5/mmbtu. “ENARSA took the cargo for $15/mmbtu plus a premium of $2.6/mmbtu based on a Henry Hub ‘futures quotation’,” we hear.

Barely 10% of the 135,000-cubic metre cargo was discharged from LNG tanker Excelerate at the GAIL and NTPC run Dabhol terminal before a jetty accident on April 4. Excelerate finally managed to leave Dabhol on May 4 after complicated customs procedures including ‘reversing’ the import bill.

Its cargo was auctioned on high seas.