Reuters is reporting that Gail India has called for more flexible contract terms to be offered by US LNG producers.
Gail India’s chairman and managing director, Shri B.C. Tripathi, made this call to US LNG companies at the CERAWeek energy conference. The company is currently holding talks with US exporters with the aim of securing LNG supplies for 2024 to 2025.
Tripathi’s main concern is reportedly centred around US contracts holding a fixed tolling fee, which subsequently makes US LNG less competitive when oil prices drop.
Gail India currently holds 20-year contracts with Dominion’s Cove Point and Cheniere’s Sabine Pass facilities, for a total of 5.8 million tpy.
According to Tripathi, India ships 75% of its US LNG supplies to India, and 25% is re-sold on the spot market. 100% of the company’s US LNG shipments will reportedly be shipped to India in the future, once additional pipelines and import terminals have been completed.