LNG tanker bonanza expected from GAIL

Vol 17, PW 2 (22 Aug 13) Midstream & Downstream

GAIL is preparing to hire at least 12 tankers to ferry LNG to India from the US east coast.

By early October, we learn, leading LNG shipping companies, among them Golar LNG, Teekay LNG, and Texas-based Excelerate Energy can expect to receive offers to submit EoIs. "GAIL's Singapore office has begun talking to tanker companies,” confirms a source.

“GAIL wants the tankers by mid-2017.” GAIL plans to bring in 3.5m t/y of LNG for 20 years from 2017 from Cheniere Energy's Sabine Pass liquefaction facility on the border between Texas and Louisiana.

Another 2.3m t/y is contracted for 20 years from Dominion's Cove Point liquefaction facility in Maryland. "We must make our own arrangements to transport LNG from these terminals," adds a GAIL source.

He explains this is because the agreements are Freight On Board (FOB) where the LNG supplier's responsibility ends when LNG is loaded onto the tanker. "This will be one of the biggest LNG tanker deals ever," adds GAIL.

"We want the best tankers at the best price." GAIL is likely to hire seven tankers for Sabine Pass and five for Cove Point - but this is yet to be confirmed.

GAIL wants a mix of standard sized and mid-sized tankers with capacities ranging from 138,000 cubic metres to 155,000-cubic metres. GAIL also wants some Q-Flex tankers over 200,000-cubic metres, and a Q-Max tanker over 266,000-cubic metres.

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