The document was signed on January 16, 2018, in New Delhi between Gajendra Singh, Director Marketing GAIL and Vitaly Vasiliev, CEO Gazprom Marketing & Trading Limited.
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 in the year 2012, the supplies under which are scheduled to start in Q2 2018.
Vitaly Vasiliev, CEO of Gazprom Marketing & Trading, said: «I am excited to announce that we agreed to deliver on our original promise and begin LNG supplies in 2018. We look forward to strengthening a mutually beneficial partnership with Gail going forward.»
Speaking on the development, Managing Director of GAIL B. Tripathi said that «This agreement is a key mile stone affirming partnership of GAIL and Gazprom in developing LNG markets under Indo-Russia trade relationship.»
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 2 companies opens up exploration of further opportunities in portfolio optimization and LNG swap dealings for mutually beneficial outcomes.
The SPA signed in 2012 is a 20-year LNG sales and purchase agreement following the signing of an earlier Basic Framework Agreement by the 2 companies on 18 May 2011.
With start of the LNG supplies from USA and Gazprom in 2018, GAIL’s LNG portfolio would increase multi-fold bringing it in the league of some of the largest traders of LNG in the world.