GAIL India will now get 2.5 million tones of Liquefied Natural Gas (LNG) for the next 20 years from Russian gas major Gazprom from 2018-19.
Gazprom and GAIL have signed a legally binding 20-year LNG sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly owned subsidiary of Gazprom Marketing & Trading, GAIL said in a statement.
The LNG supplied from the Russian gas giant will be sustainably priced with an oil-indexed formula and will be delivered to Dahej, Dabhol and Kochi terminals in India. At present, gas price in India ranges from $4.2/mmBtu (domestically produced) - $13-14/mmBtu (spot LNG).
Vitaly Vasiliev, CEO, Gazprom Marketing and Trading speaking on the partnership said: “We recognise GAIL’s strength as the major gas player within India, enabling flexible access to a rapidly developing market and are confident that this SPA will further strengthen our already well-established LNG trading relationship.”
Chairman and Managing Director, GAIL (India) Ltd, B.C. Tripathi, has for a while maintained that to meet the growing need of the Indian market, GAIL has been expanding its global presence to secure long term gas supplies.
GAIL in the recent past has signed a 20-year SPA with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for LNG supply of 3.5 million tonnes annually. The company has also executed the gas sales purchase agreement with Turkmengaz for 38 MMSCMD for 30-year supply through the TAPI pipeline. Further GAIL has also signed an LNG supply agreements with GDF SUEZ, for supply of 0.8 million tonne from 2013 to 2014, and with Gas Natural Fenosa, Spain to ensure a total supply of approximately 3 (billion cubic metres) of LNG to GAIL over the next three years to beginning January 2013.
Gazprom and GAIL have signed a legally binding 20-year LNG sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly owned subsidiary of Gazprom Marketing & Trading, GAIL said in a statement.
The LNG supplied from the Russian gas giant will be sustainably priced with an oil-indexed formula and will be delivered to Dahej, Dabhol and Kochi terminals in India. At present, gas price in India ranges from $4.2/mmBtu (domestically produced) - $13-14/mmBtu (spot LNG).
Vitaly Vasiliev, CEO, Gazprom Marketing and Trading speaking on the partnership said: “We recognise GAIL’s strength as the major gas player within India, enabling flexible access to a rapidly developing market and are confident that this SPA will further strengthen our already well-established LNG trading relationship.”
Chairman and Managing Director, GAIL (India) Ltd, B.C. Tripathi, has for a while maintained that to meet the growing need of the Indian market, GAIL has been expanding its global presence to secure long term gas supplies.
GAIL in the recent past has signed a 20-year SPA with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for LNG supply of 3.5 million tonnes annually. The company has also executed the gas sales purchase agreement with Turkmengaz for 38 MMSCMD for 30-year supply through the TAPI pipeline. Further GAIL has also signed an LNG supply agreements with GDF SUEZ, for supply of 0.8 million tonne from 2013 to 2014, and with Gas Natural Fenosa, Spain to ensure a total supply of approximately 3 (billion cubic metres) of LNG to GAIL over the next three years to beginning January 2013.
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