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Swapping of US LNG by GAIL: Can Model be Replicated for Shale Gas Import?

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State-owned gas utility GAIL India plans to swap over one-third of the liquefied natural gas (LNG) it has contracted from US with a gas seller nearer to India to save on transportation costs. 
Source:  ET

SNP Insights

Swapping arrangements with any geologically nearer country to India like Africa or middle east, will save almost 10-15 days of time over run, that a ship takes to come back & forth from USA to India. Along with that significant transportation cost can be saved which can make GAIL gain, 40-50 cents per MBTU. As it is a significant move towards lowering the cost of imported LNG, if this model can be replicated for shale gas import from USA also, then Indian power & fertilizer consumer can avail cheap shale gas at affordable cost, without incurring heavy transportation expenditure. 

Source: SNP Infra Research