Gazprom Global LNG (GGLNG), through its Singapore affiliate, Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly-owned subsidiary of Gazprom Marketing & Trading, announced the signing of three memorandums of understanding paving the way for long term LNG supplies to the major Indian energy users GAIL (India) Limited, (GAIL), Gujarat State Petroleum Company (GSPC) and Petronet LNG Limited (Petronet).
The long-term LNG supply agreement is a natural step for all parties after a number of successful LNG cargo deliveries by Gazprom to its counterparties in India since 2007. Gazprom sees India as one of its key markets for LNG supplies, along with Japan and other North Asian countries, as it continues to strengthen its presence and operations in Asia-Pacific. India is both a key market for LNG sales in its own right, and also provides significant Gas, Power and Downstream opportunities.
GM&TS will provide LNG to its Indian partners from its current and projected Gazprom production, such as Sakhalin, and will be supplemented by its wider Russian and international supply portfolio.
“ We are delighted that our successful partnership with GAIL, GSPC and Petronet has laid the foundations for these strategic LNG supply agreements. ” said Frédéric Barnaud, President & Managing Director of Gazprom Global LNG. “ Thanks to our Russian LNG portfolio, we are confident GGLNG will lead the strengthening growth of the LNG markets, in India and across the world .”
“ The negotiations are on-going and the Sales and Purchase Agreements (SPAs) are expected to be finalised over the coming months ” said Nigel Kuzemko, the company’s Singapore-based Global Director of LNG Development . “ Gazprom’s LNG marketing and trading arm has leveraged its integrated Sakhalin asset and its international trading portfolio to develop the capabilities in marketing, shipping and logistics on a global scale .”
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Source: GM&TS, June 2, 2011;