GAIL urges government to use diplomacy to help rework expensive US LNG deals
NEW DELHI: GAIL NSE 1.18 % has urged the government to use its diplomatic ties with the US to help rework the company’s expensive gas purchase deals with the American suppliers at a time the liquefied natural gas (LNG) rates in the spot markets have fallen to record lows, according to people familiar with the matter.
GAIL has contracts for the purchase of 5.8 million tonnes a year of liquefied natural gas (LNG) with two US suppliers, deals that were signed between 2011 and 2014 as LNG prices roared across the world. A global price reversal since leading to a recent collapse in the spot market has made it harder for GAIL to market the expensive US gas.
