Gail Says Petronet Should Use Swapping to Save on Gorgon LNG Price

Gail (India) is of the view that Petronet LNG should use swapping as an option for the gas contracted from Australia’s Gorgon project which will help save at least a dollar on the gas price, reports Business Line newspaper.

Gail is one of the promoters of Petronet LNG (PLL).

If the Gorgon gas, contracted in 2009, is brought at the current price, it may end up being the most expensive gas India has imported, says Business Line.

“The dynamics of the gas market is changing. There is a need to revisit the price and consider options such as swapping,” the newspaper quotes BC Tripathi, Chairman and Managing Director, Gail as saying.

LNG from Gorgon is expected to cost about $16 a unit and the delivered price to end consumers could be about $17 a unit.

“We as promoters of PLL do understand that things have to be done within the contractual framework. We do need to work together on this. As a promoter we can only propose, things have to be taken forward by PLL,” Tripathi added.