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US LNG cargos: GAIL is least prepared
Jun 05: GAIL seems to be ill prepared compared to other deep pocketed and more sophisticated LNG players who have booked capacities in US LNG terminals.
 pricing.
8A large portion of US LNG is contracted out to big portfolio players, such as Shell, Gas Natural, Total and EDF, which have positions on both the buy and sell side of the market. They also have their own shipping fleets. Because of these variables, a clear or consistent pricing incentive may not be required to see high levels of US LNG exports from these portfolio players.
8In contrast however, GAIL is ill prepared to take on forthcoming LNG supplies as it lacks the buy and sell side depths of these big players and is devoid of a shipping fleet.
8Beyond portfolio players, Asian utilities that have capacity offtake agreements for US LNG are beginning to trade volumes of LNG on a spot and short-term basis.
8Whether GAIL will have the sophistication and finesse to play this game without loss remains a moot point.
8US LNG offtakers are also swapping cargoes to minimize shipping costs and GAIL intends to do that too.
8GAIL is in this business too, as it looks to swap US LNG cargoes in exchange for LNG supply elsewhere but whether it can do so without trouble remains to be seen
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