The first shipment of liquefied natural gas intended for India’s gas utility GAIL departed from Cheniere Energy’s Sabine Pass liquefaction facility in Louisiana on March 5, marking the start of the duo’s 20-year LNG supply contract.
The cargo was loaded on board the 165,500 cbm Meridian Spirit, built in 2010, which Gail chartered in.
The large LNG carrier is scheduled to discharge the cargo at GAIL’s Dabhol terminal at the end of the month, the gas utility said.
The supply and purchase agreement for the supply of U.S.-sourced LNG to India was signed in December 2011, and commenced on March 1, 2018.
Under the terms of the SPA, Cheniere will sell and make available for delivery to GAIL approximately 3.5 million tonnes of LNG per year.
Mr. B C Tripathi, CMD, GAIL flagged off GAIL’s first USA sourced LNG cargo from Sabine Pass LNG export facility in Louisiana on 5th March 2018 pic.twitter.com/zV81pP6L5m
— GAIL (India) Limited (@gailindia) March 6, 2018
A historic day under Indo-USA energy partnership and a defining moment towards realising Hon'ble Prime Minister's vision of expanding natural gas footprints in India. GAIL flagged off India's first LNG cargo from USA under GAIL and Cheniere's long term sale purchase agreement pic.twitter.com/qUsoqiCzxy
— GAIL (India) Limited (@gailindia) March 6, 2018
“India remains an important market for LNG, and one that we hope will continue to show signs of growth,” Cheniere President and CEO Jack Fusco said.
“GAIL is one of the foundation customers of Cheniere having signed the contract in 2011. With supplies commencing from the US, GAIL will have a diversified portfolio both on price indexation and geographical locations,” B.C. Tripathi, GAIL Chairman and Managing Director , added.