Shell to sell gas to GSPC at $3.7 per mbtu

Royal Dutch/Shell is to sell 0.7 million standard cubic metres per day of gas from its newly commissioned Hazira LNG terminal to Gujarat State Petroleum Corporation (GSPC).

Shell, which announced operationalising the Rs 3,000 crore Hazira terminal yesterday, had contracted to sell 0.7 mmscmd for 210 days at a price of $3.70 per million british thermal unit (MBTU), industry sources said.

Shell's price is slightly higher than Petronet LNG's price of $3.66 per mbtu, the sources said.

This is the first cargo that Shell has sold from the terminal. The gas has been sourced from Australia's North West Shelf project, in which Shell has a 22% stake.

Hazira terminal is the first merchant terminal in asia which does not follow the conventional model of sourcing lng from a particular project on long-term and then tying up long term sales contract with customers in the importing countries.