GAIL to buy 12 LNG cargoes from France' s GDF Suez by 2014
BY RAKESH SHARMA
NEW DELHI--State-run pipeline utility GAIL said Monday that it has signed an agreement with France' s GDF Suez to buy 12 cargoes of liquefied natural gas totaling 800,000 tons in 2013 and 2014. The agreement is part of efforts, including creating regasification infrastructure and expanding gas-transmission capacity, to meet India' s demand for natural gas, Chairman BC Tripathi said in a statement.
India faces a shortage of power and natural gas. Domestic natural gas output declined for the 20th consecutive month in July, falling 13.6% from the same month a year earlier to 3.58 bcm, led by a drop in output at Reliance Industries D6 block, off India' s east coast, in Krishna Godavari basin.
GAIL has been securing LNG to help power the nation' s expanding economy. In December, it signed a contract to buy around 3.5 mmt of LNG annually for 20 years from Cheniere Energy' s LNG Sabine Pass facility in the United States state of Louisiana.
GAIL has also formed a unit in Singapore to trade LNG and Petrochemicals. The New Delhi based company is also working to expand its network of natural gas pipelines from 9,500 km to 14,500 km over the next three years.
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