GAIL (India) Ltd. has signed a 20-year import supply agreement
with U.S. based Cheniere Energy Partners L.P. (
) for an annual supply of 3.5 million metric tons of
liquefied natural gas (
The supply arrangement is estimated to be around $15 billion
to 20 billion and could be "a game changer for the Indian
market", a the "The Times of India" said of the deal.
On the other hand, at current prices of US gas and existing
liquefaction and transportation rates, the price would be $10 to
$11 per unit in India, cheaper by $5 to $6 compared to a recent
LNG contract with an Australia firm, the Economic Times said.
India, along with China, will both become significant buyers
of LNG, Edward L. Morse, managing director of commodities
research at Citigroup Global Markets Inc. had earlier said.
The two countries' huge demand for the clean energy will
eventually create an impact on global gas prices, especially on
The LNG deliveries into India are expected to start in 2017
from Cheniere's Sabine Pass LNG terminal located in western
Cameron Parish, Louisiana.
The agreement has an option for extension by 10 years.
It is not surprising that many nations now venture or have
started migrating into the use of clean energy programs and
methods as they grow more increasingly alarmed and concerned over
the planet's rising changing global weather patterns.
Earlier, ExxonMobil Corporation, in its latest report, "
The Outlook for Energy: A View to 2040
global usage of natural gas will grow 62 per cent by 2040, and
will replace coal as the second-largest fuel supply behind crude
oil by 2025.
Global Energy Demand Will Grow 32% by 2040,
Coal Usage Nears Its Final Run
China Will Dictate Market Prices as It Becomes
World's Top LNG Importer: Citigroup