BangersAndMash
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03.06.2011
Gazprom will deliver up to 2.5 million tonnes of liquefied natural gas (LNG) a year to India under a deal signed with Petronet LNG yesterday that could be worth more than $32 billion.
The 25-year memorandum of understanding underscores Indian efforts to secure power for its fast-growing economy, already Asia's third largest.
Overseas deals are being sought to help cushion against global price fluctuations and secure energy supply for a country that relies on imports of two-thirds of its oil needs.
Petronet and Gazprom Marketing & Trading, a unit of Gazprom, said they had signed a preliminary deal.
Based on market prices of $10 per million British thermal units, it could be worth about $1.3bn a year, or $32.5bn in total.
"We will negotiate pricing, volume, supply timings, etc. Discussions would begin in a month and we want to expedite this and complete the deal as soon as possible," Petronet chief executive A K Balyan said.
With an economy growing by around eight per cent a year and gas seen as an attractive option versus carbon-heavy coal and oil, India's demand could double by 2020, making it a promising market for Gazprom which already sells to an Indian state firm.
Oil&Gas Eurasia | Gazprom Signs India LNG Deal
Gazprom will deliver up to 2.5 million tonnes of liquefied natural gas (LNG) a year to India under a deal signed with Petronet LNG yesterday that could be worth more than $32 billion.
The 25-year memorandum of understanding underscores Indian efforts to secure power for its fast-growing economy, already Asia's third largest.
Overseas deals are being sought to help cushion against global price fluctuations and secure energy supply for a country that relies on imports of two-thirds of its oil needs.
Petronet and Gazprom Marketing & Trading, a unit of Gazprom, said they had signed a preliminary deal.
Based on market prices of $10 per million British thermal units, it could be worth about $1.3bn a year, or $32.5bn in total.
"We will negotiate pricing, volume, supply timings, etc. Discussions would begin in a month and we want to expedite this and complete the deal as soon as possible," Petronet chief executive A K Balyan said.
With an economy growing by around eight per cent a year and gas seen as an attractive option versus carbon-heavy coal and oil, India's demand could double by 2020, making it a promising market for Gazprom which already sells to an Indian state firm.
Oil&Gas Eurasia | Gazprom Signs India LNG Deal
