(ET)
Natural gas sales contracts are becoming relatively easier for buyers as state-run GAIL, the key gas supplier in the country, is now offering shorter-tenure contracts and easier terms. Gas supply contracts are usually long term and contain take-or-pay provision that mandates a buyer to off take pre-agreed quantity or pay for a minimum quantity even if it lifts less in a year.
GAIL, the biggest gas marketer in the country, sources a significant share of its gas portfolio from overseas. For years, it entered into long-term, take-orpay liquefied natural gas (LNG) contracts with suppliers overseas and covered itself back-to-back by signing similar contracts with domestic gas users. But the nature of its domestic contracts is now altering.
