India’s state-run gas utility GAIL (India) Limited has allocated 1 mt of the LNG it received from the US to GAIL Global Singapore Private Limited (GGSPL) for LNG trading in the global market. The latter is GAIL’s global trading arm in Singapore. GAIL (India) Limited was the first Asian company to have signed a long-term LNG sales and purchase agreement with US-based Sabine Pass Liquefaction, LLC, in 2011 for the supply of 3.5 mtpa of LNG over 20 years. The supplies are expected to start from 2017–18. This supply agreement has a price linkage with the Henry Hub price (the traded price in the US), instead of the crude oil price. In 2011, GAIL (India) Limited opened its Singapore office through GGSPL to source natural gas and engage in the trading of LNG, petrochemicals, etc.
