GAIL India and Russian firm Gazprom have renegotiated their long term LNG sale and purchase agreement that was originally signed in 2012, the companies announced on Tuesday.
“A long-term LNG Sale & Purchase Agreement building up to 2.5 MMTPA of LNG on DES (Discharge-ex-Ship) basis was executed by GAIL with Gazprom Marketing & Trading Singapore (GMTS) in the year 2012, the supplies under which are scheduled to start in Q2 2018,” GAIL said in a release.
Price adjustment
“The two parties have agreed to an adjustment to the price and volume of LNG supply thus enabling GAIL to develop incremental gas markets to offtake these volumes thereby mitigating volume risk.” The companies, however, did not divulge the new price and volume.
“I am excited to announce that we agreed to deliver on our original promise and begin LNG supplies in 2018,” Vitaly Vasiliev, CEO of Gazprom Marketing & Trading said. “We look forward to strengthening a mutually beneficial partnership with GAIL going forward.”
The original agreement signed in 2012 was a 20-year LNG sales and purchase agreement following the signing of an earlier Basic Framework Agreement by the two companies on May 18, 2011.
