Petronet to buy 1.5 mt LNG from Exxon's Aus subsidiary

Australia today became the second country after Qatar to offer India liquefied natural gas (LNG) on a long-term basis.

Petronet LNG Ltd signed a sales and purchase agreement (SPA) with the Australian subsidiary of Exxon Mobil Corp to import 1.5 million tonnes per annum of LNG for 20 years from the proposed Gorgon LNG project, a company press release said here.

LNG cargoes will be delivered to a terminal under construction in Kochi. Documents formalising the SPA were signed in Perth by ExxonMobil’s Luke Musgrave, vice-president, Australia LNG, and Petronet Managing Director Prosad Dasgupta.

“This historic agreement is the first long-term sale of LNG from Australia to India,” said Musgrave. “We welcome Petronet LNG as a foundation customer for the Gorgon LNG project and look forward to a long and successful relationship.”

Dasgupta said the agreement for the provision of LNG for PLL’s Kochi terminal would support more than $2 billion of related energy infrastructure investment in India. “Energy consumers in Kerala will now have access to a clean-burning base load fuel, which will enhance the economic development of the region and maintain the pristine ecology of Kerala,” he said.

The Gorgon LNG Project, in which the ExxonMobil subsidiary holds a 25 per cent share, will include three 5 mtpa LNG processing trains. A final investment decision is anticipated later this year.