Renegotiated LNG deal with Russia's Gazprom to kick-in from May: Pradhan

State-run GAIL India's renegotiated LNG import deal with Russian supplier Gazprom will kick-in from May, with volumes gradually ramping up to fully contracted quantity of 2.5 million tonnes (MT) in 5-6 year, Oil Minister Dharmendra Pradhan said today.

GAIL had in January renegotiated terms of its 20-year deal to import 2.5 MT a year of liquefied natural gas (LNG) from Gazprom.

"After detailed discussions, both parties agreed on an understanding for amendment to the LNG sale and purchase agreement (of 2012) through a Deed of Amendment primarily on volume ramp up and reduction in price, which has been signed on January 16, 2018," he said in a written reply to the Rajya Sabha.

Without giving details of price reduction, Pradhan said commencement of LNG supplies has been agreed from May 2018.

"Due to the gradual ramp-up, supplies are likely to reach full contracted LNG volume in 5-6 years," he said. "Commencement of LNG supplies agreed is from May 2018."