Petronet’s Dahej LNG Terminal for serving the Indian market with imported gas. (Picture Petronet).
India’s Petronet LNG Limited is to import one million ton per annum (MTA) of liquefied natural gas (LNG) from RasGas Company Ltd of Qatar from 2016 for the Indian market, adding to its earlier 7.5 MTA contract.
The LNG would be supplied to the Indian market in gas form through Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, GAIL (India) Ltd and Gujarat State Petroleum Corporation. It announced a Sales and Purchase Agreement (SPA) with RasGas on December 31, 2015.
Petronet has also entered into a binding agreement with RasGas to adjust some aspects of their existing long term LNG SPA of 7.5 MTA, signed by the parties in 1999, which laid the foundation for the LNG business in India.
Such adjustments will protect and preserve the overall value of the contract, said the two companies in a joint press release on December 31, 2015.
As per such agreement, LNG volumes not taken by Petronet from RasGas during 2015 will be taken and paid for by Petronet during the remaining term of the SPA and will maintain its current level of oil indexation with the oil index more closely reflecting the prevailing oil prices.
Commenting on this event, RasGas CEO, Hamad Mubarak Al-Muhannadi, stated that “these positive developments, including the new SPA, demonstrate the strength of our long term relationship with Petronet and commitment to growing sales into India to meet its expanding clean energy needs”.
Petronet CEO, Prabhat Singh, stated that “these developments highlight both parties confidence in the Indian market and our commitment to LNG as a cleaner, more efficient source of energy”.
RasGas is one of the main suppliers of LNG into India and has been supplying Petronet since 2004.
Petronet is the largest importer of LNG into India and is the owner and operator of the country’s largest receiving terminal at Dahej and also the Kochi LNG terminal. fii-news.com
