Re: {LONGTERMINVESTORS} GAIL - Thread

[RAJESH DESAI]

GAIL in 20-year pact to buy LNG from Russia's Gazprom BS Reporter / New Delhi Oct 02, 2012, 00:52 IST

In what could be seen as another milestone in GAIL India Ltd’s race to secure gas supplies, the state-run company has signed an agreement with Russian energy giant Gazprom to buy 2.5 million tonnes per annum of gas for 20 years beginning 2018-19.

The company has “signed a legally binding 20-year liquefied natural gas (LNG) sales and purchase agreement with Gazprom Marketing and Trading Singapore, a wholly-owned subsidiary of Gazprom Marketing and Trading,” GAIL said in a press statement here.

LNG will come from Gazprom’s Shtokman production facilities, which have 130 trillion cubic feet of in place reserves. “Under the contract, LNG will be sustainably priced with an oil-indexed formula and delivered to Dahej (Gujarat), Dabhol (Maharashtra) and Kochi (Kerala) terminals in India,” GAIL said without sharing price details.

Shtokman field, one of the world’s largest natural gas fields, lies in the Russian sector of the Barents Sea.

According to B C Tripathi, chairman and managing director of GAIL, the long-term LNG supply agreement with Gazprom, which holds the world’s largest gas reserves, is another milestone in the Indian–Russian energy cooperation.

In August this year, GAIL had signed a contract with French energy giant GDF Suez to import 800,000 tonnes of LNG from 2013 to 2014. GAIL has been expanding its global presence to secure gas supplies. It had earlier signed a 20-year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of the US-based Cheniere EnergyPartners, for supply of 3.5 million tonnes per year of LNG beginning 2017.

It has also executed a gas sales purchase agreement with Turkmengaz of Turkmenistan for buying 38 million standard cubic meters per day of gas for 30 years through the Turkmenistan-Afghanistan-Pakistan-India pipeline.

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CA. Rajesh Desai

[RAJESH DESAI]

GAIL (INDIA): Will pay PETRONET LNG around 9 bln rupees as an interest free
advance to be invested in capacity expansion at the latter's Dahej terminal
in Gujarat to 15 mtpa from 10 mtpa. The company will make use of a part of the
added capacity. (BS)



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CA. Rajesh Desai

[Rajesh Desai]

Event Update (May 14, 2013)

Event Update   GAIL (India) Ltd. Reco: ACCUMULATE CMP: Rs 332 Target Price: Rs 389 Tariff cut continues, -ve for GAIL ·      PNGRB has cut the tariff for GAIL’s K.G Basin natural gas pipelines by 52.9% from Rs.11.8/mmbtu to Rs.5.56/mmbtu effective November 20, 2008 ·      Due to retrospective effect, one-time set off comes at Rs.3.8bn (pre- tax), which impacts FY14EPS by Rs.2/share of Rs.32.6/share ·      Currently company carries 7-8mmscmd of the volume from the K.G.Basin pipeline ·      We maintain our accumulate rating due to lack of near term triggers with a TP of Rs.389. Currently, the stock trades at 9.1x FY15EPS and 1.4x P/Bv   Recommendation History Recent Research Reports GAIL (India) Ltd.: Lower subsidy payout drives the profitability PetroScan; Refining margins continue to be under stress GAIL (India) Ltd.: Transmission volumes continue to disappoint PetroScan; Refining improves, petchem declines GAIL (India) Ltd.: Strong trading income drives profitability India Oil & Gas; Government reforms in focus GAIL (India) Ltd.: One-off impacts profitability OMC’s; Ready to accelerate   Oil & Gas; Big step towards small hikes, follow-up crucial   PetroScan; Refining Margins improve, Asian spot LNG prices up   Oil & Gas; See low probability of export parity pricing for petro products   PetroScan; Refining and cracker margins crack, Winter buying spurs spot LNG prices   PetroScan; Core GRM’s plummet from mid-Oct’12 high   OMC’s; In black on budgetary supports     Click here to read report: Event Update

 

 

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CA. Rajesh Desai