GAIL to sign US gas deal with Vega Energy

Vol 18, PW 5 (23 Oct 14) News in Brief
     

GAIL will sign a formal gas supply deal in the coming days with Houston based Vega Energy.

PETROWATCH learns the deal is for gas supply to the Cove Point LNG liquefaction terminal where GAIL booked 2.3m cm/d capacity beginning 2017 through a Terminal Service Agreement signed by subsidiary GAIL Global (USA) LNG LLC on April 1, 2013. “GAIL has only booked liquefaction capacity at Cove Point,” we hear.

“It still needs to book gas supplies to Cove Point for liquefaction from companies like Vega.” A four-member GAIL delegation of director marketing Prabhat Singh, director finance PK Jain, director HR M.

Ravindran and executive director Sanjib Datta returned from a five-day trip to the US on October 18. Vega, we hear, wanted a price little over the Henry Hub index.

But GAIL negotiated them down to a “little less” than Henry Hub. GAIL has shortlisted and signed a contract with Vega to deliver 330,000 Dth/day with an option for 430,000 Dth/day.