State-owned GAIL India Ltd on Tuesday (February 6) said it will offtake about 4.5 MMTPA (million metric tonnes per annum) of LNG from Petronet LNG Ltd (PLL), which has executed a renewal of a 7.5-MMTPA LNG long-term contract with QatarEnergy.
Under the renewed LNG SPA (sale and purchase agreement), GAIL India will be offtaking its share (i.e. 60%) of the volumes on a substantially back-to-back basis.
Meanwhile, India's largest gas importer Petronet LNG Ltd (PLL) has successfully concluded and executed an LNG sale and purchase agreement (LNG SPA) for the purchase of around 7.5 MMTPA LNG with QatarEnergy on a long-term basis.
This is under the extension of an existing LNG SPA for LNG supply of around 7.5 MMTPA LNG sale and purchase agreement on a FOB basis, signed on July 31, 1999, for supplies till 2028. Under the new agreement, LNG supplies will be made on a delivered (DES) basis, commencing from 2028 till 2048.
Similar to the earlier agreement of 1999, the LNG volumes under the new SPA shall also be offtaken by GAIL India (60%), Indian Oil Corporation Ltd (30%) and Bharat Petroleum Corporation Ltd (10%) after regasification primarily from Dahej Terminal of PLL on substantially back-to-back basis.
This LNG SPA between PLL and QatarEnergy will ensure the energy security of India and assure continued supplies of regasified LNG to major consuming, sectors like fertilisers, CGD, refineries and petrochem, power and other industries, the company added.
Shares of GAIL (India) Ltd ended at ₹181.50, up by ₹5.60, or 3.18%, on the BSE.
