GAIL Looking at Medium Term Gas Contracts

GAIL (India) Ltd is looking at medium-term imported contracts to meet the growing gas demand amidst limited domestic supplies, Hindu Business Line reported.

The company is looking at Russia, West Asia, and South-East Asia for sourcing liquefied natural gas. GAIL is not looking at Australia for imports for now.

GAIL is seen to have an immediate demand of 2 million tonnes additional LNG, which can increase to 5 mt or more by 2016-17.

The company plans to buy four spot cargoes in the January-March quarter of the current fiscal. The company is sourcing cargo from Marubeni (Japan), Sonatrach (Algeria), Rasgas (Qatar), as well as a US-based company.

GAIL has been in talks with five-six players, including Macquarie Energy, to source LNG. The price of gas should be attractive enough for GAIL to get it into India.