To get 1st LNG cargo from Marubeni in Feb: GAIL
State-run gas utility GAIL (India) Ltd will receive its first cargo of liquefied natural gas (LNG) next month under a three-year deal with Japanese trader Marubeni, its head said on Tuesday.
January 18, 2011 / 20:20 IST
State-run gas utility GAIL (India) Ltd will receive its first cargo of liquefied natural gas (LNG) next month under a three-year deal with Japanese trader Marubeni, its head said on Tuesday.
Chairman BC Tripathi said GAIL would get a spot LNG cargo from RasGas of Qatar on Jan. 27 and one from Marubeni on Febuary 14 at an LNG terminal on India's west coast.GAIL has signed a deal to import 0.5 million tonnes of LNG from Marubeni."There is additional demand coming from major consumers in power fertilizer, refineries and city gas distribution firms ...there is a shortfall of 5-7 mmscmd (million standard cubic metres a day) from domestic sources," Tripathi told reporters.He said gas output from Panna Mukta and Tapti fields, off India's west coast, has declined, while production from Reliance Industries-operated D6 block in the east coast has dropped to about 55 mmscmd from 60.GAIL on Tuesday also reported a 12.7% jump in its December-quarter profit to 9.68 billion rupees ($212.7 million).Tripathi attributed the growth in quarterly profit to an increase in gas transmission and natural gas trading business.GAIL planned a capex of 70 billion rupees in the next fiscal beginning April, mainly to add 1,500 kilometers of pipeline by end-December to its current network of 8,100 kilometers, he said."Post expansion (of pipeline network) GAIL's transmission capacity would rise to 230 mmscmd from 170 mmscmd now," he said.GAIL will borrow half of the planned spending in the next fiscal from the market, and would raise USD 150 million through external commercial borrowings next month, Tripathi said.Its head of finance R. K. Goel said GAIL would raise USD 150-$200 million through sale of foreign currency bonds in the next fiscal. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
