India’s state-run utility GAIL and Gazprom re-negotiated the long-term LNG Sale and Purchase Agreement (SPA) originally signed in the year 2012. An amendment to this effect was signed in New Delhi between Mr Gajendra Singh, Marketing Directror of GAIL and Mr. Vitaly Vasiliev, CEO Gazprom.
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 in 2012, with the supply starting in the second quarter of 2018.
The two parties will adjust the price and volume of LNG supply, enabling GAIL to develop incremental gas markets to offtake these volumes and mitigate volume risk.
Mr. B C Tripathi, Chairman and Managing Director of GAIL, said: “This deal is a step for GAIL to diversify LNG portfolio by spreading price reference indices across multiple geographies so as to provide consumers greater flexibility in service. This chapter of relationship between the two companies opens up exploration of further opportunities in portfolio optimization and LNG swap dealings for mutually beneficial outcomes.”
The SPA signed in 2012 concern a 20-year LNG sales and purchase agreement, following the signing of an earlier Basic Framework Agreement (BFA) by the two companies on 18 May 2011.