Gail to import LNG at $9.28 mBtu
GAIL (India) will this week import India's most expensive LNG till date when it receives a 135,000 cubic meter cargo from Algeria.india Updated: May 17, 2006 16:39 IST
GAIL (India) Ltd will this week import India's most expensive liquefied natural gas till date when it receives a 135,000 cubic meter cargo from Algeria.
GAIL has contracted one spot cargo from Sonatrach of Algeria at an ex-ship price of $9.28 per million British thermal unit (mBtu), which would be offloaded at Petronet LNG Ltd's Dahej terminal in Gujarat on May 19-20.
"One cargo will touch Dahej on May 19-20 and two more cargoes are likely in June-July," company chairman and managing director P Banerjee told reporters on sidelines of a conference.
Banerjee declined to give the price at which it was importing LNG from Algeria but said it was in the range of $8-9 per mBtu.
Company sources, however, said the 60,000 tonne cargo loaded from either the Arzew or Skikda LNG terminals in Algeria cost GAIL $9.28 per mBtu (including shipping cost).
GAIL will have to pay $0.45 per mBtu import tariff, $0.01 education cess and $0.53 per mBtu to Petronet LNG for regassification, bringing the final cost of regassified LNG at Dahej to over 10 dollars per mBtu. An additional 12.5 per cent in VAT will be paid to the Gujarat government raising the price by over a $1 per mBtu.
Sources said the FOB price paid by GAIL was more than that paid by Shell for its mid-April import of LNG to the Hazira LNG terminal. Shell is believed to have paid a CIF price of $8 per mBtu. Shell's LNG came from Oman. Shell's R-LNG was sold at 9.07 dollars per mBtu (while taxes remained the same, regassification cost at Hazira pegged at $0.67 per mBtu) to Essar and Gujarat State Petroleum.