GAIL sells Algerian LNG cargo, scouts for supplies

After the sale of the first liquefied natural gas (LNG) spot cargo from Algeria, GAIL is scouting for more LNG cargoes from southeast Asia, Middle East and North Africa. The company is in talks with major suppliers from these places.

"GAIL has sold out the entire cargo of the first ever LNG spot cargo bought from Algeria. The LNG was sold to consumers such as National Thermal Power Corporation, Delhi Vidyut Board and Birla Copper," a GAIL official said.

Commenting on the development, GAIL Chairman and Managing Director Proshanto Banerjee said, "In April 2004, the company sold regassified LNG for the first time in India. This was a long-term contract supply from RasGas, Qatar. Two years later, GAIL had set a milestone by selling the first internationally-traded spot LNG cargo."

He added that the Indian gas market has now attained full maturity despite all speculations. "This summer, consumers can look forward to cheaper power produced from LNG rather than naphtha. With this successful marketing of spot LNG, the domestic gas market is aligned with the global gas market," he said.

The first spot cargo of LNG from Sonatrach of Algeria was received on May 20 at Dahej.