State-owned Indian Oil Corp (IOC) today said it has signed an interim agreement to buy 0.7 million tonnes (MT) a year of LNG from US on a long-term contract beginning 2018.
"To secure LNG supplies, IOC has forayed into independent LNG purchase," IOC Chairman B Ashok told reporters here.
It last year bought 1.2 million tonnes ayear of liquefied natural gas (LNG) for 20 years with Pacific North West LNG project of Canada. Delivery is expected to commence by 2020.
Now, IOC has signed an agreement with Mitsubishi Corp of Japan for 0.7 million tonnes a year of LNG for 20 years from Cameron LNG project in USA, he said adding the delivery is expected to start from the first quarter of 2018.
IOC Director (Business Development) D Sen said an interim sale purchase agreement has been signed with Mitsubishi Corp which now has to be converted into a firm Gas Sales and Purchase Agreement (GSPA).
LNG from US will be imported at IOC's under-planning Ennore import terminal in Tamil Nadu.
"The price is indexed to Brent crude," he said.
