RasGas Company Limited and Petronet LNG Limited have entered into a binding sale and purchase agreement (SPA) for the supply of an additional one million tonnes per annum (mta) of LNG to India starting in 2016.
The additional LNG is for onward sale to four Indian entities, notably Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., GAIL (India) Ltd., and Gujarat State Petroleum Corporation.
Qatar’s RasGas is one of the main suppliers of LNG into India and has been supplying Petronet – the largest importer of LNG into India – since 2004.
Further to the new agreement, RasGas and Petronet LNG Limited have also 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.
RasGas CEO Mr. Hamad Mubarak Al-Muhannadi, stated that, “These positive developments, including the new SPA, demonstrate the strength of our long-term relationship with Petronet and commitment to growing sales into India to meet its expanding clean energy needs.”
Petronet CEO Mr. Prabhat Singh added, “These developments highlight both parties confidence in the Indian market and our commitment to LNG as a cleaner, more efficient source of energy.”
With operational facilities based in Ras Laffan Industrial City, Qatar, RasGas’ principal activities are to extract, process, liquefy, store and export LNG and its derivatives from Qatar’s North Field. RasGas exports to countries across Asia, Europe and the Americas with a total LNG production capacity of approximately 37 mta.
RasGas also operates the Ras Laffan Helium Plant established in 2003. The plant, which came on-stream in 2005, extracts, purifies and liquefies helium from the North Field. The second helium plant entered production in June 2013 bringing the total liquid helium production capacity to 1.96 Bscf per year.