In a statement GAIL Executive Director A.K. Ray said, “The negotiations have been going on for over the past four months and finally we have closed a deal and decided to buy LNG from NIOC at a very attractive rate.”
“The gas may be unloaded at Dahej terminal for regasification and then sold through GAIL’s pipelines to prospective customers. As the agreement is for long-term supply from NIOC, supply of 10 million metric tons per annum of LNG now has been ensured.
“By 2012 natural gas demand would reach 90 mmscmd at a delivered price of US$4 per MMBTU, which could almost double if the delivered price settles close to US$3 per MMBTU,” added Ray.
