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GAIL India Secures 4.5 MMTPA LNG Offtake in Renewed Petronet Agreement

Under the renewed LNG Sale and Purchase Agreement (SPA), GAIL India will procure its share, accounting for 60 percent of the volumes, on a substantially back-to-back basis.

February 07, 2024. By Abha Rustagi

GAIL India Ltd. announced its commitment to offtake approximately 4.5 MMTPA of liquefied natural gas (LNG) from Petronet LNG Ltd. This commitment comes as part of a renewed long-term contract between Petronet LNG and QatarEnergy, ensuring continued LNG supplies to meet the nation's growing energy demands.

Under the renewed LNG Sale and Purchase Agreement (SPA), GAIL India will procure its share, accounting for 60 percent of the volumes, on a substantially back-to-back basis. This agreement underscores the strategic cooperation between Indian energy entities and global LNG suppliers.

Simultaneously, Petronet LNG successfully concluded a separate LNG SPA with QatarEnergy for the purchase of approximately 7.5 MMTPA LNG on a long-term basis. This agreement extends an existing partnership established in 1999 and ensures uninterrupted LNG supplies till 2048.

The renewed agreement signifies a transition from Free On Board (FOB) to Delivered Ex Ship (DES) basis for LNG supplies, commencing from 2028. The LNG volumes under this new SPA will be regasified primarily at PLL's Dahej Terminal, with GAIL India, Indian Oil Corporation Ltd, and Bharat Petroleum Corporation Ltd collectively offtaking the supplies after regasification, maintaining the distribution ratio of 60 percent, 30 percent, and 10 percent respectively.

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LNG Sale and Purchase Agreement

PLL's Dahej Terminal

Indian Oil Corporation

Bharat Petroleum Corporation

LNG supplies