Gazprom, GSPC in pact for 2.5 mtpa LNG supply

The Gujarat State Petroleum Corporation (GSPC) and Russian petroleum giant Gazprom Global LNG (GGLNG) have entered into an agreement for supply of up to 2.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the latter to the former.

GGLNG, through its Singapore affiliate, Gazprom Marketing and Trading Singapore a fully owned subsidiary of Gazprom Marketing & Trading, signed the memorandum of understanding (MoU) with GSPC, an official statement said.

Tapan Ray, managing director of GSPC, said, “Following the successful signing in January this year of a structured deal to supply 0.3 mtpa of LNG for the next two years, GSPC and Gazprom are now exploring the possibility of building further on this mutually beneficial relation. This (latest) MoU represents another significant step towards building upon the already strong relation between GSPC and Gazprom. We believe securing sufficient long-term LNG supplies is imperative for meeting the growing energy needs of our country.”

GGLNG said the company was looking at a long-term alliance for LNG supplies with GSPC. “This deal provides both parties with the possibility to further enhance our 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,” said Nigel Kuzemko, GGLNG’s Singapore-based Director of LNG Development.

“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,” a government statement said.