GAIL India inks 20 year LNG sales and purchase agreement with GM&TS

Country’s leading gas transporter and marketer, GAIL India has inked a legally binding 20 year liquefied natural gas (LNG) sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly-owned subsidiary of Gazprom Marketing and Trading.

Under the terms of the agreement, GAIL India will receive 2.5 million tonnes of LNG per annum equivalent to approximately 130 million MMBtu or 3.5 bcm or 122 bcf per annum over a period of 20 years expected to start from year 2018-19.

The LNG will come from Gazprom’s Shtokman production facilities (130 tcf reserves), optimized and supplemented by GM&T’s global trading portfolio and capabilities. Under the contract, LNG will be sustainably priced with an oil-indexed formula and delivered to Dahej, Dabhol and Kochi terminals in India.

Besides, this agreement is a key milestone for both the company and Gazprom which reaffirms both their strong corporate partnership in developing India as one of the core markets for LNG business, and the Indo-Russian trade relationship.