Petronet LNG Ltd and Gazprom Global LNG have concluded a memorandum of understanding for the long term supply of LNG.Under the terms of the agreement, Petronet will receive up to 2.5 million tpy of LNG from GM&TS’ international supply portfolio for up to 25 years. This transaction illustrates the Parties’ objective to develop a direct long-term relationship after GM&TS’ successfully delivery of a number of spot cargoes via third party arrangement in Petronet’s Dahej LNG terminal.
Petronet have previously bought a large number of spot cargoes from Gazprom via third-party arrangement in Petronet’s Dahej LNG terminal. The company already buys 7.5 million tpy of LNG from Qatar under a long-term supply agreement and if the deal with Gazprom is successful it will represent the first long term supply deal between the two companies.
Gazprom sees India as one of its key markets for LNG supplies, which also include Japan and other North Asian countries, as it continues to strengthen its presence and operations in Asia-Pacific. This supports Petronet in its vision to become a key energy provider to the nation by leveraging the company’s unique position in the LNG value chain along with an international presence.
Gazprom has a lot of new LNG projects in progress and it is key to its long-term expansion plans that it finds new buyers for its LNG in developing markets in the Asia pacific area.
"This MOU is a key step in diversifying our LNG supply portfolio and this relation will go long way in developing mutually beneficial relation between the two companies,” said Mr A K Balyan, Managing Director and CEO.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/03062011/petronet_sings_mou_with_gazprom_for_lng_supply/