First LNG Cargo Shipment from US Reaches India

India recently received its first LNG cargo from the US under a long-term contract of GAIL (India) Ltd. A GAIL statement said the cargo was received at Dabhol. “Commencement of LNG supplies under the Henry Hub indexed contracts is significant for GAIL and the Indian markets as well,” the statement added.

Speaking on the event, Minister for Petroleum and Natural Gas, Mr. Dharmendra Pradhan, said, “The arrival of the first LNG cargo from the US was a significant milestone in the direction of realising adequate availability of natural gas through imports from diversified sources. A shift towards a gas-based economy would require augmenting domestic production as well as imports.”

GAIL will have a portfolio mix of LNG indexed to Henry Hub and crude oil. Gail had in 2011 and 2013 entered into two contracts of 20 years each, to lift 5.8-mt of LNG from the US, which is valued at around $32-bn. The gas will come the Dominion Cove Point project in Maryland (signed in 2011) and the Sabine Pass project in Louisiana (agreement signed in 2013) from the US.

Mr. Pradhan described the arrival of the first shipment and the conclusion of the long-term contract with the US-based Cheniere Inc as “a new beginning in the Indo-US energy partnership and trade”.