GAIL India has become first Asian entity to buy US shale gas after the Indian state owned firm booked a ship of LNG from Cheniere Energy Inc's Sabine Pass plant in Louisiana, Press Trust of India reported Friday.
GAIL bought the cargo on spot basis and will receive it at the Dabhol LNG import terminal in Maharashtra, a company official told the news agency.
This would mark the start of US LNG exports into India. The official said the delivered price of the US shale gas cargo is about $5 per million British thermal units.
The state owned company has signed a 20 year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners for supply of 3.5 million tons per year of LNG.
The company also signed a terminal service agreement for 2.3 million tons per year of LNG liquefaction capacity with Dominion Cove Point LNG. Cheniere is expected to start production early 2018.
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