New Delhi, June 4 - Neftegaz.RU. India will on Monday import its 1st ever cargo of LNG from Russia under a long-term deal as the world's fourth-largest buyer of LNG diversifies its import basket to meet its vast energy needs.
State-owned GAIL India will bring the shipload of LNG from Gazprom at Petronet’s import terminal. Beginning of supplies from Russia comes within weeks of India importing its 1st ever LNG cargo from US under a long-term import deal.
Like when the US LNG touched at Dabhol port in Maharashtra, Oil Minister Dharmendra Pradhan will be at the Petronet terminal when the Russian gas arrives. GAIL has renegotiated with Russian supplier Gazprom the terms of the 20-year deal to import 2.5 million tonnes a year of LNG. Both price and volume ramp up have been renegotiated.
Company Chairman and managing director BC Tripathi had last month stated in New Delhi that the contracted volume has been lowered from 2.5 million tonnes to 0.5 MT in the 1st year 2018-19, 0.75 MT in 2019-20, 1.5 MT in the 3rd year 2020-21.
GAIL has committed to importing the full 2.5 MT a year by the 4th year and make up for the initial volume reduction over the remaining length of the contract. Also, the price indexation has been changed from the Japan Customs-cleared Crude to Brent, and the oil-linked slope of the contract formula lowered, and therefore the final price.
GAIL had signed the original deal on August 29, 2012 with Gazprom Marketing & Trading Singapore. The deal was renegotiated in January this year. Gazprom will supply LNG from Yamal LNG project in the Arctic peninsula.
