India's largest gas distributor, GAIL (India) Ltd. (GAIL), has issued a liquefied natural gas (LNG) swap tender, according to two industry sources on Thursday.

Details of the Swap:

• Offering: A U.S.-loaded LNG cargo on a Free-On-Board (FOB) basis from Cove Point, Maryland.
• Loading Date: March 10.
• Seeking: An LNG cargo on a Delivered Ex-Ship (DES) basis for delivery to India's Dabhol terminal.
• Delivery Window: March 1-7.

Purpose and Context:
This type of swap allows GAIL to optimize its logistics and supply portfolio. By exchanging a U.S. cargo for one delivered directly to India, the company can better manage shipping schedules, costs, and regional supply commitments without altering the underlying volume of gas it handles. The tender reflects the active and flexible nature of global LNG trading, where such swaps are common to balance regional supply and demand mismatches.