Petronet LNG Limited and Gazprom Global LNG, through its Singapore affiliate, Gazprom Marketing and Trading Singapore, a 100% subsidiary of Gazprom Marketing & Trading, have concluded a memorandum of understanding for the long term supply of LNG.
Under the terms of the agreement, Petronet will receive up to 2.5 million tonnes per annum of LNG from GM&TS’ international supply portfolio for up to 25 years.
This transaction illustrates the Parties’ objective to develop a direct long-term relationship after GM&TS’ successfully delivery of a number of spot cargoes via third party arrangement in Petronet’s Dahej LNG terminal.
GM&TS sees India as one of its key markets for LNG supplies, which also include Japan and other North Asian countries, as it continues to strengthen its presence and operations in Asia-Pacific. This supports Petronet in its vision to become a key energy provider to the nation by leveraging the company’s unique position in the LNG value chain along with an international presence.
“ This MOU is a key step in diversifying our LNG supply portfolio and this relation will go long way in developing mutually beneficial relation between the two Companies “, said Mr A K Balyan, Managing Director and CEO .
Nigel Kuzemko, Gazprom’s Singapore-based Director of LNG Development said; “ We are delighted to have entered into this agreement with Petronet, given their proven operational capability and their key role as aggregator of LNG in India, we see Petronet as a strong strategic partner for Gazprom Marketing & Trading Singapore .”
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Source: Petronet LNG, June 1, 2011;