Sustained cheaper spot LNG prices are the biggest risk to business, says GAIL Chairman

India’s top gas utility GAIL (India) Ltd sees the falling spot price of liquefied natural gas (LNG) as the biggest risk to its business, its chairman Manoj Jain said on Monday.

Spot prices of LNG in Asia hit a record low around $3 per million British thermal units (mmBtu) this month, making supplies of gas under previously agreed long-term deals unattractive for some price sensitive customers in India.

GAIL over-committed to new LNG volumes through long-term deals with the US and Russia earlier this decade when supply was scarce and buyers rushed to secure deals.

Spot prices at that time were in the double-digits.