New Delhi: Resuming spot import of liquefied natural gas after a gap of almost three months, Shell India is likely to import an LNG cargo from Australia for its Hazira terminal in Gujarat, tomorrow.
“Shell, which went out of business after fall in crude oil prices made naphtha cheaper than imported LNG, is bringing the full ship-load of LNG from North West Shelf project at a CIF or ex-ship price of $9.06 per million British thermal unit (mmBtu),” industry sources said.
“Over the CIF price (rate including cost, insurance and freight), a 5% custom duty would be levied, taking the landed cost to $9.4 per mmBtu. Beyond this, $0.70-0.80 per mmBtu re-gasification charges would be levied,” the sources said.
A company spokesperson, when contacted, declined to comment saying: “We can’t comment on such specifics.”
The 74:26 joint venture of Shell and Total of France had last imported an LNG cargo at the Hazira terminal on 13 October, 2008, from Trinidad and Tobago at $20.5 per mmBtu.
Sources said the latest cargo, in all probability, has been bought by state-run gas utility GAIL India Ltd. The company Director (Marketing) B C Tripathi had on 1 January stated that it had bought two-third of a cargo Shell was importing, this month, for $11.70 per mmBtu ex-terminal price (excluding taxes and transportation cost).
He stated that GAIL had bought 50 million standard cubic metres of regassified-LNG from Shell to plug the gap in supplies resulting from the shutdown of Petronet LNG Ltd’s Dahej terminal, from 7-12 January.
Petronet, in which GAIL is a promoter along with Indian Oil, Oil and Natural Gas Corp and Bharat Petroleum have shut down its Dahej import terminal, also in Gujarat, to hook up new facilities that would double the capacity to 10 million tonnes.
“GAIL has procured a spot cargo from Shell to facilitate (an) optimal level of production by our power and fertiliser customers,” Tripathi had said last week.
“The company would supply the regassified-LNG from Shell to power fertiliser units that have placed a demand on it during the Dahej shutdown period, at a $11.7 per mmBtu ex-terminal price,” he said.
This price does not include pipeline transportation cost, sales tax and marketing margin.
GAIL markets 60% of the LNG imported by Petronet at Dahej.
He also said that the company may buy the remaining 30 mscm of the cargo, Shell is importing, if the need arises.