India gets 1st US LNG shipment at Dabhol

Received its first LNG cargo from the US under a long-term supply deal when a ship carrying super-cooled natural gas arrived at Dabhol in Maharashtra. A charter ship, MV Meridian Spirit, arrived at Dabhol after 25 days voyage from Louisiana, state-owned gas utility GAIL India Ltd.

GAIL India has contracted 3.5 million tonnes per annum of liquefied natural gas (LNG) from US energy firm Cheniere Energys Sabine Pass liquefaction facility in Louisiana. The first cargo from the project arrived at Dabhol, the cite of Indias biggest gas-fired power plant. It has also contracted long-term volumes for another 2.3 million tonnes at Dominion Energys Cove Point liquefaction plant.

The vessel arrived close on the heels of Dabhol power plant and the adjoining LNG receipt terminal being split into two separate companies. While state-owned electricity generator NTPC is the lead for the power block, GAIL is the majority owner of Konkan LNG Pvt Ltd, the firm which will run the 5 million tonnes a year LNG receipt facility.

GAIL is one of the early movers to contract US LNG and has 5.8 million tonnes per annum of US LNG in its portfolio. GAIL shall be receiving around 90 cargoes per annum from Sabine Pass and Cove Point LNG terminals, The LNG, he said, is indexed to US Henry Hub gas index as well as crude oil. GAIL will have an optimum portfolio mix of LNG indexed to Henry Hub (HH) and crude oil and the customers will benefit from such a unique price blend.

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