US-indexed LNG catches the fancy of Indian firms on Trump's return

Indian consumers are seeking to diversify their sourcing contracts by balancing US Henry Hub linked LNG purchases with oil linked contracts

Nearly 13 years after Gail, a state-run gas distributor, had agreed to source liquefied natural gas (LNG)  from two American projects at Henry Hub-linked prices, India is taking the same path under short-term contracts and based on the same formula.

 

This coincides with the return of Donald Trump to United States (US) presidency. Trump, in his earlier stint, had pushed New Delhi to boost sourcing crude oil and LNG from the US, and a clamour by Indian city gas utilities and industrial consumers for purchase contracts linked to Henry Hub.

 

Gail, state-run refiners Bharat Petroleum and Hindustan Petroleum, and IGL,