GAIL India, signs one of the largest deals ever signed by an Indian Company, entering into a $60 Billion deal with two US based companies for bringing in close to six million tonnes of liquefied Natural Gas (LNG) every year over a 20 year period starting 2016-17
GAIL is the first Asian Company to buy liquefied Natural Gas from the US at an advantage of low prices, apparently the lowest in 13 years. Mr. B.C. Tripathi said that the landed price of Natural Gas in India will be close to 12$ per million metric British thermal units (mmBtu)
This deal will equip GAIL to supply 23 million metric standard cubic meters of Gas per day beginning 2017 in the domestic market and benefit industries including, power, fertilizers and others. Apart from this GAIL has also secured 3.5 million tonnes per annum of LNG from US based Cheniere for 20 years. The second 2.3 mtps deal has been signed with Dominion energy. It is the cheapest LNG that has been sourced so far for the domestic market!