GAIL inks LNG deal with Spanish firm

Our Bureau Updated - March 12, 2018 at 05:18 PM.

GAIL (India) Ltd struck a second liquefied natural gas (LNG) deal this week. On Friday, the company signed an LNG supply agreement with Gas Natural Fenosa, Spain, under which GNF shall ensure a supply of about 3 billion cubic metres of LNG to GAIL over the next three years.

The supply shall begin January, and is the largest contract of the Spanish multinational in this region, GAIL said in a statement here.

Earlier, this week GAIL had entered a medium-term supply agreement with GDF Suez for sourcing 0.8 million tonnes of LNG from 2013 to 2014.

Official sources told

Business Line that the gas price been linked to Brent. The prevailing spot LNG price is between $13 and $14/mBtu (excluding charges for re-gasification, transmission, marketing margins, and taxes).

In addition to the supply agreement, the two companies (GAIL and GNF) have signed an industrial co-operation agreement for development of energy projects in India.

Chairman and Managing Director, GAIL, B.C. Tripathi said, “The signing of the gas supply and industrial cooperation agreements is a significant step as it augurs an enduring partnership between the two companies in working towards securing additional LNG volumes for long term energy security of India, exploring bigger opportunities along the Gas value chain both in India and abroad.”

>richa.mishra@thehindu.co.in

Published on August 31, 2012 16:10