Comments
Gujarat State Petroleum Corporation Ltd (GSPC) and Gazprom Global LNG (GGLNG) on Thursday announced the signing of a long-term MoU for the supply of 2.5 million tonens per annum (MTPA) of liquefied natural gas (LNG) to GSPC to meet the growing demand of gas.
GGLNG, through its Singapore affiliate, Gazprom Marketing and Trading Singapore (GM&TS), a 100 per cent wholly-owned subsidiary of Gazprom Marketing & Trading, would negotiate this supply.
The MoU, signed recently, builds on the relationship cemented between GM&TS and GSPC under a short-term supply deal signed in January 2011.
Indian gas market
The rapid development of the Indian gas market reinforces its need for LNG supply and provides an opportunity to develop trading, power and downstream activities, GSPC said.
Mr Tapan Ray, Managing Director of GSPC, said after the successful signing of a structured deal to supply 0.3 MTPA of LNG for the next two years, in January, GSPC and Gazprom are now exploring the possibility of building further on this mutually beneficial relationships on a long-term basis.
This MoU represents another significant step towards building upon the relations between GSPC and Gazprom. “We believe securing sufficient long-term LNG supplies is imperative for meeting the growing energy needs of our country.”
Mr Nigel Kuzemko, GGLNG's Singapore-based Director of LNG Development, said the deal provided both the parties with the possibility to further enhance their relationship. “We see tremendous value in establishing a long-term alliance with GSPC as they provide access to one of the major gas demand centres in India.”
State-promoted GSPC is India's leading oil and gas company and one of the largest gas trading companies having significant presence across the gas value chain, in gas transmission, gas distribution businesses and in power generation businesses. GSPC has been sourcing LNG independently from international markets on short and medium term basis.
GM&TS started operations as a platform for LNG trading, shipping and originating carbon reduction projects in the Asia Pacific markets. The business has developed a wide range of emission reduction projects in the region under the Clean Development Mechanism of the Kyoto Protocol. GM&TS is helping build a significant and sustainable carbon business with access to European, Japanese and other emerging markets.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.