Indian Biggies Bid for U.S. LNG Hubs

Bangalore: India’s leading oil and gas companies, Reliance Industries (RIL), Oil and natural Gas Corporations (ONGC) and GAIL want to buy shares in liquefied natural gas (LNG) terminals on the east coast of the United States, as they are planning to ship gas to India in cheaper rate at about $9.5 per million metric British thermal unit (mmBtu). If the Indian biggies succeed in buying the shares, they would be able to import gas over 50 percent cheaper than the current rates.

Working on converting LNG complexes from re-gasification to liquefaction (import to export) terminals underway, massive shale gas discoveries have made U.S. gas-surplus. Liquefaction of gas makes it easier to store and transport it where pipelines are not available.

"Indian companies with shale gas assets are interested in acquiring an operating interest in terminals to ship gas to India at less than $10," said a banker one of the bankers helping Indian companies buy stakes in terminals and he added that one such deal could be finalized before year-end. One of the bankers directly involved in these discussions said he expected further clarity on the U.S. gas exports in the next 18 months, by when the revamped LNG terminals would be ready.