GAIL Gas is looking at buying gas from difficult local fields to meet the growing demands for natural gas. This could include signing long-term liquefied natural gas trade agreements with international firms
GAIL Gas is considering purchasing gas from local fields that are difficult to meet the growing demands for natural gas, which could include signing long-term liquefied natural gases (LNG) import agreements with international businesses.
Jain stated that GAIL is looking for an agreement over a 10-year period to import each year one million tons of LNG.
Natural gas consumers in Asia are looking to secure their supplies using long-term contracts to protect against fluctuating global prices in a move that is expected to stop the last decade’s trend of a rise in spot purchases.
GAIL Gas has an agreement for the long-term import of gas in place with Gazprom Marketing & Trading Singapore to purchase an average of 2.5 million tons of gas each year.
Under the terms of the agreement, Gazprom will gradually increase its supply to GAIL and deliver two million tonnes of LNG in 2021.. The supply will increase up to 2.5 million tonnes by 2022, and 2.85 million tonnes by 2023, a senior official of the company spoke on the sidelines of the conference.
Gazprom is advised GAIL Gas that it is experiencing difficulties in obtaining gas and has requested to change the date of a liquified natural gas (LNG) cargo, Jain said, adding that the Russian company is able to supply the volume of gas it has committed to supply through its assets portfolio.
Imports by GAIL Gas
GAIL’s imports of natural gas could rise by 5-6% during this fiscal year until the month of March in 2023 Jain stated, noting that he anticipates the prices of LNG to be very high over the next 12-18 months.
Asian Spot LNG prices have dropped about 50% from their all-time high in December. However, they prices are nearly three times higher than the levels of May 2021, as prices have been pushed up by tight supply in the global market.