State-run GAIL (India) Ltd. wants to swap some of its contracted gas supplies from Cheniere Energy Inc.'s Sabine Pass Liquefaction terminal in the U.S. to reduce shipping costs.
GAIL has a contract to buy 3.5 million tonnes per year of LNG from Sabine Pass on a free on board (FOB) basis for 20 years. The supplies are expected to begin flowing from the first quarter of 2018, a document posted on the company's website showed.
The Indian firm wants to swap LNG on a FOB basis with firms that have customers in countries in which LNG trade is not prohibited by US law and sanctions.
In exchange, GAIL is seeking equivalent supplies on a delivered basis at regasification terminals at Dahej and Dabhol in western India.
Trade sources last year told Reuters that GAIL has sold at least 0.5 million tonnes per year of LNG to Royal Dutch Shell Plc (NYSE: RDS.A).
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