In February, when Prime Minister Modi met US President Donald Trump during his visit to America, he proposed to increase the purchase of American oil and gas drastically. It is now coming out that India’s leading natural gas company GAIL (India) has invited an American LNG (EOI) for purchasing 26 percent stake in a LNG (liquefied natural gas) project and for 15 years. According to a report by CNN-News18, this has been revealed according to the EOI document.
What is in this document?
According to the EOI document, Gayle is showing interest in obtaining 1 million metric tonnes per year (MMTPA) i.e. 1 million tonnes per year from the current or upcoming natural gas liqueurization projects in the US. The agreement will be for 15 years and will be on a free basis, that is, all risk after supply by the seller will be on the buyer, that is, any damage during shipping will be carried out by the seller. In addition, the duration of the contract can be extended from 5 to 10 years for the supply of LNG by mutual consent. Its supply will start from existing projects from the year 2029 or 2030 and the calendar from upcoming projects will start from 2030.
Quiti option to buy
Gayle says that he will also have the option to buy equity stake in the US project. According to the document, if the entire price chain of the project such as asset ownership, LNG sales rights, operations and maintenance (O&M) etc. are with the same company, Gayle will be able to use equity options in that company. However, if different companies manage the price chain, the GAIL will use equity options in the holding company, which will have 100 percent profitable ownership in the entire price chain of the project.
The post Gayle’s big plan for gas supply for 15 years, partnership between America and India will be first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
