The 20-year LNG sale and purchase agreement between Cheniere Energy Inc. and GAIL (India) Ltd. has begun, with a shipment leaving Cheniere's Sabine Pass export terminal in Louisiana after a March 5 ceremony.
Under the contract, signed in December 2011, GAIL will buy about 3.5 million tonnes per annum from the fourth train at the Sabine Pass terminal, which was authorized by the Federal Energy Regulatory Commission to begin service in October 2017 and was placed in service the same month.
"India remains an important market for LNG, and one that we hope will continue to show signs of growth," Cheniere CEO Jack Fusco said in a March 5 news release. "We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India."
Sabine Pass' second LNG shipment, which went out in April 2016, was purchased by GAIL, reportedly on a spot basis with a delivered price of about $5/MMBtu.
