GAIL extends LNG interest deadline

Vol 11, PW 22 (20 Mar 08) News in Brief

GAIL has extended till March 31 a deadline for LNG suppliers to respond to its â€کNotice for empanelment of parties for the supply of spot LNG’.

“Some companies have responded,â€‌ confirms GAIL. “A few asked for more time.

â€‌ GAIL’s earlier deadline for companies to show interest in signing a â€کMaster Spot Purchase Agreement’ was February 29. “We have received a good response but the overall picture will be clearer by March 31,â€‌ adds GAIL.

Sceptical observers think otherwise: “I don’t think GAIL has received a good response,â€‌ says one. “LNG prices are at an all time high.

No one is committing â€کspot’ cargoes. Japan’s largest nuclear power plant will remain shut for close to a year and they are buying all available gas at any price.

China has booked 45 spot cargoes till December 2008. Who will offer cargoes to GAIL if they can get a better price elsewhereâ€‌ GAIL wants to buy LNG for the Dabhol plant in Maharashtra, which it jointly owns with NTPC through Ratnagiri Power.

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