Gazprom, GSPC ink MoU for 2.5 MTPA LNG supply

Gujarat government owned 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 liquified natural gas (LNG).

GGLNG, through its Singapore affiliate Gazprom Marketing and Trading Singapore (GM&TS) a 100 per cent wholly-owned subsidiary of Gazprom Marketing & Trading signed a memorandum of understanding with GSPC for the supply of LNG amounting to 2.5 MTPA, an official statement said.

Talking about the signing of MoU, Tapan Ray, managing director of GSPC said, "Following the successful signing in January this year of a structured deal to supply 0.3 million tonnes a year of LNG for the next two years, GSPC and Gazprom are now exploring the possibility of building further on this mutually beneficial relation. This 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."

On its part, GGLNG said that the company is looking at long term alliance for LNG supplies with GSPC. "This deal provides both parties with the possibility to further enhance our relationship," said Nigel Kuzemko, GGLNG's Singapore-based Director of LNG Development.

"The agreement builds on the relationship cemented between GM & TS and GSPC under a supply deal signed earlier this year. 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.