Mumbai : GAIL(India), the country\u2019s largest gas transmission and marketing company, has decided to cut down its long term purchase of liquefied natural gas from RasGas to 30%. <\/p>\n
“GAIL has decided to cut down its long term purchase by 30-35%. We are discussing this issue in terms of the options that we have of downward flexibility of 10% built in contract. Further we are reducing the offtake by another 10-20%, ”<\/p>\n
GAIL Chairman B C Tripathi told analysts in Mumbai.<\/p>\n
GAIL reported a dismal set of numbers for the quarter ended March 2015. Immense losses suffered by the petrochemical segment and lower trading\/marketing margins had a sharp bearing on its performance, which came in below Street expectations. The stock, which fell 4.5% intra-day, closed with a loss of 1.85% at Rs 381.15 after the results on Wednesday.<\/p>\n
GAIL has been under stress as liquified natural gas (LNG) procured via long-term contract has turned out to be expensive than spot buys with no takers for the gas. <\/p>\n
The company has now decided to use spot gas at its petrochemical plant.<\/p>\n
“Petrochemical plant is consuming regasified LNG as of now. We have decided that it will use spot gas from next month. We have signed a term deal for six cargoes of spot gas from a major supplier. This will help reduce input costs,” said Tripathi.<\/p>\n
The 7.5 million tonne LNG from Rasgas procured by Petronet LNG (of which GAILis liable to take 60%) on take-or-pay basis is expensive at $13 per mBtu. Spot gas on the other hand is available at $8 per mBtu.<\/p>\n
GAIL\u2019s extensive network of pipeline, too, remains under-utilised due to shortage of natural gas and low demand for high-priced imported LNG cargoes (long-term contracts) looking at low spot prices of LNG. Due to these two factors, analysts remain worried, and expect the stock to stay under pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mumbai : GAIL(India), the country\u2019s largest gas transmission and marketing company, has decided to cut down its long term purchase of liquefied natural gas from RasGas to 30%. “GAIL has decided to cut down its long term purchase by 30-35%. We are discussing this issue in terms of the options that we have of downward flexibility of 10% built in contract. Further we are reducing the offtake by another 10-20%, ” GAIL Chairman B C Tripathi told analysts in Mumbai. GAIL reported a dismal set of numbers for the quarter ended March 2015. Immense losses suffered by the petrochemical segment […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-17332","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/17332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=17332"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/17332\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=17332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=17332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=17332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}