Gazprom Marketing and Trading Singapore (GMTS), part of Russian energy giant Gazprom, has signed a 20-year liquefied natural gas (LNG) supply contract with India’s GAIL, GMTS said on Monday.
The deal follows the signing of a Basic Framework Agreement between the two companies on May 18, 2011.
“Under the terms of the agreement, GAIL will receive 2.5 million tons per annum of LNG (equivalent to approximately 3.5 bcm per annum) over a period of 20 years,” GMTS said in a statement.
Under the contract, LNG will be sustainably priced with an oil-indexed formula and delivered to the Dahej, Dabhol and Kochi terminals in India.
“We are delighted to have signed this agreement with GAIL during a period of rising demand for LNG in India. We are looking forward to working together with GAIL to help meet India’s expanding gas demand whilst securing a long-term market for Russian gas,” Gazprom Marketing Trading CEO Vitaly Vasiliev said.