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GAIL India surges on inking 20-year sale and purchase agreement with Cheniere, USA

12 Dec 2011 Evaluate

GAIL India is currently trading at Rs. 395.55, up by 3.45 points or 0.88% from its previous closing of Rs. 392.10 on the BSE.

The scrip opened at Rs. 396.00 and has touched a high and low of Rs. 400.00 and Rs. 393.20 respectively. So far 14232 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 535.85 on 06-Jan-2011 and a 52 week low of Rs. 367.00 on 22-Nov-2011.

Last one week high and low of the scrip stood at Rs. 404.90 and Rs. 387.15 respectively. The current market cap of the company is Rs. 49737.00 crore.

The promoters holding in the company stood at 57.34% while Institutions and Non-Institutions held 38.62% and 3.20% respectively. 

GAIL (India) has signed a sales and purchase agreement (SPA) for supply of LNG over 20 years with Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Energy Partners, L.P., USA for supply of 3.5 million tonnes per annum (MTPA) of LNG.

The LNG would be supplied from train four of the Sabine Pass LNG receiving terminal located on the Sabine Pass Channel in western Cameron Parish, Louisiana. The Sabine Pass LNG terminal project is being developed by Sabine Liquefaction and would include up to four liquefaction trains capable of producing up to 18 mtpa of LNG. The project is being developed in phases with each LNG train commencing operations approximately six to nine months after the previous train.

Sabine Liquefaction has recently announced that it has reached its targeted annual contract quantity of 7 mtpa for the first phase and is advancing towards making a final investment decision for the development and construction of the first two liquefaction trains. The SPA with GAIL represents the first contract for the second phase of the project, which will also include two liquefaction trains with combined production capacity of 9.0 mtpa. 

Under the SPA, GAIL will pay Sabine Liquefaction as per contractual provisions on a Henry Hub basis after transfer of custody on FOB. LNG will be loaded onto GAIL’s vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery, and an extension option of up to ten years. LNG deliveries are expected to occur upon commencement of operations of train four in 2017.

However, bridging supplies of LNG will start from train two in the year 2016. The SPA is subject to certain conditions precedent, including but not limited to Sabine Liquefaction receiving regulatory approvals, securing necessary financing arrangements and making a final investment decision to construct the second phase of the liquefaction project.

GAIL India Share Price

157.80 -1.10 (-0.69%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
GAIL India 157.80
Gujarat Gas 362.60
Indraprastha Gas 169.25
Mahanagar Gas 1125.45
Adani Total Gas 632.90
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