Liquefied Natural Gas Indian Gail Purchases Natural Gas From Texan Gas Operations

Editor: Dominik Stephan

GAIL has entered an agreement with Cheniere Energy Partners's subsidiary Sabine Liquefaction to purchase liquefied natural gas from Sabine's gas terminal project at the Gulf of Mexico, currently under development.

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GAIL enters a long term purchase agreement with Abine Liquefication, a Texan soperator of liquefication plants for natural gas. (Picture: PROCESS India)
GAIL enters a long term purchase agreement with Abine Liquefication, a Texan soperator of liquefication plants for natural gas. (Picture: PROCESS India)

Houston/Texas – Cheniere Energy Partners has entered a liquefied natural gas ("LNG") sale and purchase agreement the Indian gas transfer and marketing company GAIL. Under the agreement, GAIL will purchase approximately 3.5 million tonnes per year from Cheniere's subsidiary Sabine Pass Liquefaction from a currently developed liquefaction project at the Sabine Pass LNG terminal. Already prior to the full operational status of the project, GAIL will purchase bridge volumes of approximately 0.2 million tonnes per year.

With up to four liquefaction trains, the Sabine Pass operation is targeted at selling approximately 14 million tons/year of the capacity under long-term sale and purchase agreements. Sabine recently announced that it has reached its targeted annual contract quantity of 7 million tons/year for the first phase and is advancing towards making a final investment decision for the development and construction of two liquefaction trains. The contract with GAIL represents the first contract for the second phase of the project, which will also include two liquefaction trains with combined production capacity of 9 million tons/year.

“The Agreement Will Help GAIL to Ensure Long Term Gas Supply”

"GAIL will join BG and Gas Natural Fenosa as the next foundation customer for our Sabine Pass liquefaction project. GAIL is India's leading natural gas company and its largest shareholder is the Government of India," said Charif Souki, Chairman and CEO. "We are building a strong portfolio of customers, consisting of energy companies engaged in the natural gas, LNG and power markets with operations spanning the globe. We continue to hold advanced discussions with additional global LNG buyers and expect to complete commercial discussions for the remaining capacity of the second phase of the project, train three, in the coming weeks."

Commenting on the development, Mr. B. C. Tripathi, Chairman & Managing Director, GAIL (India) Limited said, "The agreement with Cheniere will help GAIL to ensure long term gas supply for the growing demand in the Indian market. This will be in addition to other initiatives being undertaken by GAIL which includes building captive LNG facilities in India and augmenting its transmission capacity from 175 Million Metric Standard Cubic Meter Per Day (MMSCMD) to over 300 MMSCMD over the next two years. With an office established in Houston, GAIL has acquired shale gas assets in Carrizo's Eagle Ford Shale acreage and is further looking for shale gas assets in the US."