Petronet LNG enters into binding SPA with RasGas, Qatar

Petronet LNG Ltd. | Industrial Gases & Fuels | Oil & Gas | BSE: 532522 | NSE: PETRONET

31 Dec 2015 Evaluate

Petronet LNG has entered into a binding sale and purchase agreement (SPA) with RasGas of Qatar for supply of an additional 1 MTA of LNG to India starting in 2016 for onward sale to four Indian entities i.e. Indian Oil Corporation, Bharat Petroleum Corporation, GAIL (India) and Gujarat State Petroleum Corporation. Further, RasGas and Petronet ING have entered into a binding agreement to adjust some aspects of their existing long term LNG SPA of 7.5 MTA, signed by the parties in 1999, which laid the foundation for the LNG business in India. Such adjustments will protect and preserve the overall value of the contract. As per such agreement, LNG volumes not taken by Petronet from RasGas during 2015 will be taken and paid for by Petronet during the remaining term of the SPA and will maintain its current level of oil indexation with the oil index more closely reflecting the prevailing oil prices. Consequently, Petronet has made similar adjustments to its existing Gas Sales & Purchase Agreement with its intermediate-offtakers, GAIL (India), Indian Oil Corporation and Bharat Petroleum Corporation.

Petronet LNG, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. The company is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come.