GAIL opposes IGX platform for LNG terminal capacity booking

India's top natural gas marketer GAIL has opposed the Indian Gas Exchange's (IGX) proposed platform for booking capacity at LNG import terminals, calling it an unnecessary cost layer for consumers. GAIL said in a submission to the Petroleum and Natural Gas Regulatory Board that existing frameworks do not need a separate booking platform, and that downstream gas consumers are already under margin pressure from high and volatile global LNG spot prices.

GAIL, which operates an LNG terminal on India's western coast, argued that information asymmetry has not been a significant barrier to terminal users and that no major inefficiencies exist under the current system. Over half of India's 57.5 million tonnes per annum LNG regasification capacity remains underutilised due to weak domestic demand, and GAIL said a booking platform is unlikely to meaningfully increase utilisation. The PNGRB is consulting stakeholders on IGX's proposal.