Low spot LNG prices have prompted the Indian Oil Corporation to up its activity in the market.
As IOC’s senior executive Debasis Sen told Reuters, the company is looking to buy one LNG cargo per month on the spot market in through 2015 and 2016 exploiting the currently lower short-term prices.
At the start of June, the company signed an interim sales purchase agreement with Mitsubishi Corporation for the supply of 0.7 MMTPA of LNG for 20 years from the Cameron LNG project in the USA. The deliveries are expected to start in the first quarter of 2018.
It has also recently awarded the engineering, procurement, construction and commissioning contract to Black & Veatch for its LNG receiving terminal at Ennore, that will enable the company to supply liquefied natural gas to high demand southern states, particularly Tamil Nadu and some parts of Karnataka and Andhra Pradesh.
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LNG World News Staff; Image: K Line