GAIL to open LNG trading desk in Singapore next week

NEW DELHI: State-owned gas utility GAIL India is likely to open a liquefied natural gas (LNG) trading desk in Singapore next week to source fuel for meeting growing energy demand of the country.

"GAIL is actively scouting for LNG from various sources for both its long-term as well as short-term requirement. In this regard, GAIL plans to setup a LNG trading desk responsible for sourcing LNG as well as trading on LNG for arbitrages," said a source privy to the development.

GAIL Chairman and Managing Director B C Tripathi is scheduled to travel to Singapore next week to open the trading desk.

Besides identifying potential LNG suppliers for long term, short term and spot supplies, and undertaking commercial negotiation for LNG supplies, the desk would also look at logistics and shipping requirements for moving LNG to India.

Besides, it would enter into price and supply hedging, and would develop model for long term, medium term and short term sales purchase agreements.

Also, it would trade LNG quantities for Arbitrages in India and Abroad, the source said.

GAIL is India's largest gas marketing, transmission and distribution company. It is the principal marketeer for the LNG that Petronet LNG imports at Dahej terminal in Gujarat.

In addition, GAIL is a promoter of Ratnagiri Gas and Power Ltd (Dabhol) that owns a near-complete 5 million tons a year import facility on the Maharasthra coast.

Besides having rights for 3 million tons per annum of the import capacity at RGPPL, GAIL is also the agency designated for sourcing LNG requirement for the Ratnagiri LNG Terminal.