GAIL (India), on Monday, announced that it had signed a legally binding 20-year liquefied natural gas (LNG) sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a wholly-owned subsidiary of Gazprom Marketing & Trading.
Under the agreement, GAIL will receive 2.5 million tonnes of LNG annually (equivalent to about 130 million British thermal unit or 3.5 billion cubic metres or 122 billion cubic feet annually) over 20 years beginning 2018-19. LNG will come from the Gazprom's Shtokman production facility, which has 130 trillion cubic feet of in-place reserves.
This would be optimised and supplemented by GM&T's global trading portfolio and capabilities, GAIL said in a statement.
“Under the contract, LNG will be sustainably priced with an oil-indexed formula, and delivered to Dahej, Dabhol and Kochi terminals in India,’’ the statement said.