India signs $20b LNG import deal with Cheniere Energy

December 12, 2011 | LNG & LPG

LNG_Carrier

Cheniere Energy Partners has entered into a long-term gas supply with the Gas Authority of India Limited (Gail) for the Indian state owned company to  buy 3.5 million tonnes a year of  liquefied natural gas.

“GAIL has signed a sales and purchase agreement [SPA], for supply of LNG over 20 years, with Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Energy Partners, LP, the United States, for supply of 3.5 million tonnes per annum of LNG,” GAIL announced. The supplies may start as early as 2016.

“Under the SPA, GAIL will pay Sabine Liquefaction as per contractual provisions on a Henry Hub (U.S.gas benchmark) basis after transfer of custody on FOB. LNG will be loaded onto GAIL’s vessels,” the statement said.

The 20-year term would commence upon the date of first commercial delivery, and there was an extension option of up to 10 years. The LNG  from Sabine Pass shall form a part of the basket for feeding LNG to Dabhol terminal in Maharashtra and Kochiin Kerala.

Charif  Souki, chairman and CEO, said GAIL would join BG and Gas Natural Fenosa as the next foundation customer for our Sabine Pass liquefaction project.