GAIL’s Singapore office, which was inaugurated today, will tie-up as much as $400 million worth of LNG cargoes and petrochemical products next year for delivery into India, chairman and managing director BC Tripathi informed the media
Singapore: GAIL (India) has earmarked $400 million for its new Singapore trading office to secure LNG and petrochemical product cargoes for delivery to India in 2012, reports PTI quoting chairman and managing director BC Tripathi.
GAIL’s Singapore office, which was inaugurated today but will begin trading next month on getting all formal approvals, will tie-up as much as $400 million worth of LNG cargoes and petrochemical products next year for delivery into India, he told PTI after addressing a press conference.
90% of the trade would be in LNG from the initial start-up.
“India is a huge market for LNG and petrochemical products while supply remains tight,” stressed Mr Tripathi, reaffirming GAIL’s commitment to energy development both within India and globally through an annual investment of $2 billion.
He also disclosed that GAIL was building shale gas expertise through participation in projects in the United States.
“The company is building expertise in shale gas and will participate in the Indian shale gas projects once the government announces its policy and development plans,” he said.
He said participation in US shale gas was a part of GAIL’s strategy to develop technology, expertise and know-how.
GAIL, along with its international partners in existing projects, will aggressively bid for shale gas concessions in India once the government puts them up for auction, which is expected to take place in about one year.
GAIL has invested $100 million on the US shale gas projects and plans to spend another $200 million over the next two years, said Mr Tripathi, indicating that the company will spend $1 billion on shale gas projects in the coming years.
Several shale gas projects were being negotiated in the United States and Canada, he disclosed, adding that the company’s next investment decision in upstream shale gas was expected in six months.
The target would be to ship the North American shale gas LNG to India and if not feasible, trade it globally, said Mr Tripathi.
The Singapore office, which is being opened a few months after a Houston office and a year after its office in Egypt, underlines GAIL’s focus on global gas resources and trade, said Mr Tripathi.
Additionally, GAIL continues to make regular investments on gas infrastructure in India, with the next big proposal involving the establishment of a floating or land-based LNG terminal on the east coast of the country.
A final investment decision on the east coast terminal is expected in six months, he told reporters.
Mr Tripathi said GAIL will continue with its aggressive business development strategy, including participation in international gas pipeline projects linking the Indian market to huge neighbouring gas basins.