Qatar’s RasGas and India-based Petronet LNG Limited (Petronet) have entered into a binding sale and purchase agreement (SPA) for supply of an additional one million tonnes per annum (MTA) of LNG to India starting in 2016
Further, RasGas and Petronet LNG Limited have entered into a binding agreement to adjust some aspects of their existing long term LNG SPA of 7.5 MTA, signed by the parties in 1999, which had laid the foundation for the LNG business in India. According to the agreement, the overall value of the contract will be preserved and protected and the LNG volumes not received by Petronet from RasGas during 2015 will be purchased and paid for by Petronet with no additional costs during the remaining term of the SPA.
The LNG will be sold to four Indian entities — Indian Oil Corporation, Bharat Petroleum Corporation Limited, GAIL (India) Limited and Gujarat State Petroleum Corporation.
RasGas CEO Hamad Mubarak Al-Muhannadi said, “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 added that the developments highlight both parties confidence in the Indian market and the company’s 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 the Kochi LNG terminal.
