GAIL (India) and GDF SUEZ of France, on Monday, announced that they had entered into a medium-term LNG supply agreement for supply of 12 cargoes from 2013 to 2014, representing a total of 0.8 million tonnes. This agreement will contribute to supply the Indian gas market, which is expected to grow from 58 billion cubic metres in 2012 to 220 cubic metres in 2020, representing a CAGR of over 18 per cent, an official statement issued here said. The agreement was signed in Paris.
Demand-supply gap
B.C. Tripathi, chairman and managing director, GAIL said: ``This agreement with GDF SUEZ is yet another step by GAIL to bridge the demand-supply deficit of the Indian market in the medium-term. This is in addition to other initiatives of GAIL towards LNG sourcing, creating LNG re-gasification infrastructure and augmenting transmission capacity significantly during the next two to three years. With this step, we look forward to strengthen our partnership with GDF SUEZ in the future. GAIL will continue to make assiduous efforts to tie-up affordable LNG in its portfolio to meet the rapidly growing energy demand of the Indian market.’’
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Jean-Marie Dauger, executive vice-president of GDF SUEZ in-charge of the Global Gas and LNG business line, was quoted as saying that the LNG supply agreement with GAILwas a real satisfaction for GDF SUEZ. `` Between 2010 and 2016, GDF SUEZ is planning to deliver about 10.8 million tonnes to Kogas, CNOOC, Petronas, Petronet, PTT and GAIL. These agreements with key Asian energy players show GDF SUEZ’s strategic commitment to the region, and allow the group to build on these strong relationships to develop all its businesses,’’ he remarked.