October

Gazprom Marketing and Trading Singaporeand Gail Sign 20-Year LNG Supply DealGazprom to supply GAIL 2.5 million tonnes of LNG per annum for 20 yearsUsersuiredo startindustrialom. Soonestting somen the UKergy’sy, nowrcent ofers. Nowping thetion rating.Gazprom Marketing and Trading Singapore(GM&TS), a 100% wholly-owned subsidiaryof Gazprom Marketing & Trading, has signeda legally binding 20-year liquefied naturalgas (LNG) sales and purchase agreement(SPA) with GAIL (India) Limited (GAIL),following the signing of an earlier BasicFramework Agreement (BFA) by the twocompanies on 18 May 2011.Under the terms of the agreement, GAILwill receive 2.5 million tonnes of LNG perannum of LNG (equivalent to approximately130 million MMBtu or 3.5 bcm or 122 bcf perannum) over a period of 20 years.LNG will come from Gazprom’s productionfacilities, optimised and supplementedby GM&T’s global trading portfolio andcapabilities. Under the contract, LNG willbe sustainably priced with an oil-indexedformula and delivered to Dahej, Dabhol andKochi terminals in India.This agreement is a key milestone forboth GAIL and Gazprom, reaffirmingboth their strong corporate partnership indeveloping India as one of the core marketsfor LNG business and the Indo-Russiantrade relationship.Vitaly Vasiliev, CEO of Gazprom Marketing& Trading, said: “We are delighted to havesigned this agreement with GAIL, during aperiod of rising demand for LNG in India.We are looking forward to working togetherwith GAIL to help meet India’s expandinggas demand whilst securing a long-termmarket for Russian gas.” He continued, “Werecognise GAIL’s strength as the major gasplayer within India, enabling flexible accessto a rapidly developing market and areconfident that this SPA will further strengthenour already well-established LNG tradingrelationship.”Commenting on the development, B. C.Tripathi, Chairman & Managing Director,GAIL (India) Limited said, “This long-termLNG supply agreement with Gazprom, whichholds the world’s largest gas reserves,is another milestone in Indian–RussianEnergy Cooperation. The deal with Gazpromreinforces GAIL’s commitment to facilitatethe development of the Indian market forwhich US$6 billion in investments arebeing made by GAIL in creating NaturalGas infrastructure. The deal also marksour efforts to create a well-diversified andsecured supply portfolio to meet the evergrowing energy requirements of the Indianeconomy and enable sustainable long-termgrowth for GAIL.”About GAIL (India) LimitedGAIL (India) Ltd., is India's principal NaturalGas Company with activities rangingfrom Gas Transmission and Marketing toProcessing (for fractionating LPG, Propane,SBP Solvent and Pentane); transmission ofLiquefied Petroleum Gas (LPG); productionand marketing of Petrochemicals likeHDPE and LLDPE and leasing bandwidthin Telecom sector. GAIL has extended itspresence in Power, Liquefied Natural Gas(LNG) re-gasification, City Gas Distributionand Exploration & Production areas throughequity and joint venture participations. GAILregistered a turnover of US$7.9 billion andprofit after tax of US$708 million for the year2011-12.GAIL owns and operates over 9,500 Kmof high pressure cross country naturalgas pipeline network and can handle 175mmscmd. The company is in the process ofsignificantly augmenting its pipeline networkto reach every part of India. Within the nexttwo to three years, GAIL will have a pan-India natural gas pipeline infrastructurespanning over 14,500 km and can handlevolumes over 300 mmscmd. To secureimport of LNG, GAIL is at an advance stageof commissioning 5 MMTPA LNG Terminal16