GSPC on LNG hunt to replace Jordan Cove deal

Vol 17, PW 24 (17 Jul 14) Midstream & Downstream
     

GSPC LNG is unhappy with the pricing and terms of its non-binding deal to take 2m t/y of LNG from the Jordan Cove Energy project in the US and is looking for alternatives in the US and Canada.

Last November GSPC LNG signed a ‘Term Sheet’ with the proposed Jordan Cove Energy project promoted by Canadian company Veresen in US state Oregon to source LNG for its proposed Mundra LNG terminal. But PETROWATCH learns last month (June) GSPC LNG appointed Delhi-based Metis to study other options.

GSPC wants a longer term contract and is hoping for better terms for shipping costs, taxation (FOB or DES), and contract title after loading the shipment. In February, a manager at sister firm GSPC Gas, Shailendra Singh, was transferred to GSPC LNG to help with gas sourcing.

“We're looking for better terms,” confirms a manager close to the project. “We'd prefer to link the contract price to Henry Hub.

” GSPC has begun setting up boundary walls at the Mundra LNG terminal site but other activities are held up due to delays receiving 'co-developer' approval from the commerce ministry because of the recent change in government. Without this approval, GSPC and port owner Adani cannot get tax-free status within the port's Special Economic Zone (SEZ).