Gazprom Marketing & Trading Singapore (GMTS) and GAIL, formerly known as the Gas Authority of India Ltd, have signed a 20-year sale and purchase agreement (SPA) for the supply of LNG to GAIL from the US and Gazprom.
An amendment to the to the SPA was signed on 16 January by GAIL Director of Marketing Gajendra Singh and Gazprom Marketing & Trading Ltd CEO Vitaly Vasiliev.
The agreement, which will commence in 2018, comes after a successful renegotiation of the long-term LNG SPA originally signed in 2012, and will significantly increase GAIL’s LNG portfolio.
An agreement was made to adjust the price and volume of LNG supply, which will allow GAIL to develop incremental gas markets to offtake these volumes and mitigate volume risk.
“I am excited to announce that we agreed to deliver on our original promise and begin LNG supplies in 2018,” Mr Vasiliev said.
“We look forward to strengthening a mutually beneficial partnership with GAIL going forward.”
GAIL Chairman and Managing Director Mr. B C Tripathi said that the deal was an opportunity for the company to diversify its portfolio and provide more flexible service to customers.
He said the partnership opened up further opportunities in portfolio optimisation and LNG swap dealings.
“This agreement is a key mile stone affirming partnership of GAIL and Gazprom in developing LNG markets under Indo-Russia trade relationship,” Mr Tripathi said.
For more information visit the GAIL website.
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