This translates to about .`4,750 crore a year, or.`40,000 crore additional payment in present value terms, with an interest rate of 10%.Gail will, no doubt, pass this on to its client-cum-subsidiaries like Gail Gas and Indraprastha Gas (IGL). Gas in Asian markets is available at $5.50-6 per MMBTU.The contract states that even if the gas price is low, Gail cannot take advantage of this. With gas prices touching the floor, the company’s share price dipped to singledigits. Since SPAs like the Gail contract, however, Chenierie’s share has gained 30% in 2017, and now prices have reached $54 per MMBTU. Buying LNG long-distance, without fully exploring short-distance natural gas from Myanmar, Bangladesh and Malaysia, makes little sense.

Source: Economic Times March 13, 2018 17:37 UTC