Gail’s U.S.-Linked LNG Breaking Traditional Ties to Crude

Gail India Ltd., the nation’s largest natural gas distributor, is offering supplies from the U.S. at prices tied to the American benchmark as an alternative to its oil-linked contracts.

Gail, which agreed to buy U.S. liquefied natural gas starting in four years, is offering to resell it at a fixed premium over the price at Henry Hub, the Louisiana clearinghouse and North American benchmark, Marketing Director Prabhat Singh said in an interview. Asia’s LNG contracts traditionally are tied to oil, making them vulnerable to spikes in crude prices.