Gas arbitrage window: GAIL has a huge opportunity – 2 Nov 2021

Huge arbitrage windows are available for GAIL from out of its Henry Hub term cargoes

But once all the newly constructed fertilizer plants come on stream, around 2.5 MMTPA of HH gas will have to find a way to them in India

Another 1 MMTPA or more of HH LNG is deployed in long term contracts in India already

Today GAIL could make close to Rs 1000 crore on a single cargo of LNG brought from HH and sold at JKM but claims that all its cargoes have already be pre-placed in back to back contracts

But windows of opportunities will open up for fresh cargoes ahead, and if the arbitrage remains strong, there is still big money to be made from just a couple of cargoes out of HH