Presence across the LNG Value Chain
GGSPL, through its parent company (GAIL), has access to the entire LNG value chain with major play in liquefaction, LNG shipping and regasification. This makes us unique in our value proposition and provides us the flexibility and agility for better portfolio management and delivering the maximum value to our customers. Our presence across the LNG value chain includes:
Current Businesses – Domestic
GGSPL’s strong and yet growing portfolio of business alliances, is a key factor for being part of the LNG value chain. Through these alliances, GAIL ensures the long-term supply of Natural gas so as to cater to its growing demand. Additionally partnering with Cheniere, Gazprom, etc gives GAIL the added long-term advantage of enhancing its scale of operation and diversifying its supplier portfolio, opening avenues to a brighter future for Natural Gas.
Cheniere: GGSPL has assured access to the long term LNG supply contract signed by GAIL with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners. The sales purchase agreement has a term of 20 years starting from the date of first commercial delivery, and a 10-year extension option.LNG deliveries are to begin upon commencement of operations of train four in 2018 Read More
Dominion Cove Point: GGSPL will have access to natural gas procured by GAIL Global (USA) LNG LLC (an affiliate) from the US natural gas market and delivered to the Cove Point pipeline for liquefaction at the Dominion Cove Point terminal with which GAIL has a long term terminal service agreement.The contracts signed with Cheniere and Dominion provides GGSPL access to one of the largest Henry Hub LNG portfolios in the world and an opportunity to market LNG from the US. Read More
Gazprom: GAIL/GGSPL also has access (conditions apply) to the long term supply agreement signed between GAIL and Russia’s Gazprom Marketing and Trading. The LNG will be sourced from Gazprom’s own production facilities and global trading portfolio. This deal also marks our efforts to create a well-diversified and secured supply portfolio.Read More
GGSPL has long term access to liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland. This is through the terminal service agreement signed between GAIL and Dominion. Cove Point will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific shale gas basins in North America. Dominion, which is a Fortune 500 company, is one of the largest producers and transporter of energy in the US.
GGSPL is proposed to be mandated as the shipping operator for the LNG ships chartered on a long term basis by GAIL to transport the LNG contracted on FOB basis from Sabine Pass and Cove Point terminals in US.
This provides us the access to assured shipping capacity and flexibility to ship our cargoes anywhere across the world. A memorandum of understanding has already been signed between GAIL and Shipping Corporation of India in this regard.
GGSPL has access to regasification capacities at the existing and all upcoming regasification projects of GAIL in India. We also have access to the regasification facilities in India operated by Petronet LNG Ltd., through GAIL’s Capacity Booking in Petronet LNG Regas Terminals. This provides us access to the demand sink in the growing Indian natural gas market without any geographical constraints. The regasification facilities where we have access include:
Dahej: GAIL has marketing rights to 60% natural gas off-take (of first 7.5 MMTPA tranche) from the 10 MMTPA Dahej regasification terminal operated by Petronet LNG. In addition, it has access to 50 % of additional 5 MMTPA regasification capacity in the upcoming expansion of the Dahej terminal. This provides GGSPL assured access to regasification capacity and to the growing natural gas market in westIndia.
Dabhol: The 5 MMTPA Dabhol LNG terminal would serve as a gateway for entry of natural gas to the southern and western parts of India. The terminal began operations in 2012 and GAIL is the commercial operator of the same. GAIL has taken this terminal for a 25-year lease and has announced plans to double its capacity in the coming years.Read More
Kochi: GAIL is considering to book regasification capacity at the new 5 MMTPA terminal in Kochi, operated by Petronet LNG. Located in a fast developing suburb of Kochi the 5 MMTPA Terminal would provide GAIL / GGSPL access to southern markets of India.
Kakinada FSRU: Kakinada Seaports Limited and Andhra Pradesh Gas Distribution Corporation Limited (APGDC) have signed a memorandum for setting up of a floating, storage and re-gasification (FSRU)-based liquefied natural gas terminal in Kakinada. APGDC is a joint venture of GAIL Gas Limited and AP Gas Infrastructure Corporation. The FRSU will have capacity of 3.5 MMTPA and will be upgraded to 5 MMTPA when the land terminal is set up. GGSPL has assured capacity access in this project. The FSRU terminal will reduce overheads associated with importing LNG from west coast terminals.
Apart from the strategic alliances that GAIL boasts of, GAIL has additional tie-ups with different companies with the sole purpose/resolve of acquiring/securing and developing Oil & Gas assets thereby boosting Oil & Gas sourcing prospects for India in the coming future. It is joint ventures like these that enable GAIL to strengthen its interests in the domain of Oil & Gas
EDF Trading: EDF Trading and GAIL have signed a Memorandum of Understanding (MOU) to jointly acquire and develop upstream oil and gas assets in North America and to partner in trading and optimization of US gas and LNG. As part of the MOU, GGSPL has been proposed as the representative of GAIL for participating in the unincorporated LNG trading optimization JV with EDF Trading.
Carrizo: GGSPL has access to US Shale Gas assets through the joint venture agreement signed between GAIL and Carrizo Oil & Gas on a portion of the company’s Eagle Ford Shale assets. GAIL will gain a 20% interest in 20,200 net acres owned by Carrizo in South Texas.