Tripathi sets up core team for US LNG

Vol 20, PW 24 (24 Aug 17) News in Brief
     

Time is running out for GAIL's first US LNG deliveries from Cheniere and chairman BC Tripathi is anxiously planning ahead.

Tripathi, we hear, is handpicking a special team of 10 marketing executives to look for global LNG swap opportunities for this relatively expensive gas while pushing as much as possible to the Indian fertiliser sector. Among them is GAIL's Ahmedabad zonal manager Rajiv Singhal who last month (July) was transferred to the gas marketing division in Delhi to join this team.

Singhal will report to Manoj Jain, executive director gas marketing. "Tripathi is worried," says a source.

"US volumes are big and the job is challenging." First deliveries of 3.5m t/y from Cheniere are expected between August and December 2018 under a 20-year take or pay contract. GAIL will have to pay $3/mmbtu fixed liquefaction costs plus 115% of the prevailing Henry Hub rate, a fixed premium, and shipping charges of $2 to $2.50/mmbtu.

Of the 3.5m t/y, GAIL has already signed a 500,000 t/y deal to sell to Shell in 2015 and in February 2017 signed an 800,000 tonne swap deal with Gunvor.

LNG Summit