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
