Gail to import LNG at $9.28/MBTU

Gail India will import a spot LNG cargo from Algeria at $9.28 per million british thermal unit (MBTU).

"The first cargo is arriving on May 19 at Dahej (in Gujarat), and two more cargos are expected in June-July," Prasanto Banerjee, chairman of Gail, said today.

Asked about the price, he said it was in the range of $8-9 per MBTU. Company sources, however, said the ex-ship price of LNG was $9.28 per MBTU. This is the first LNG cargo Gail has bought from the international spot market.

Royal Dutch/Shell had last month contracted an LNG cargo for its Hazira terminal, also in Gujarat, at a delivered price of about $8 per MBTU.

Banerjee also said that the company was interested in 23 out of the 55 oil and gas blocks on offer in NELP-VI, and the companmy was in dialogue for prospective foreign partners for making the bids.