ExxonMobil and Petronet Sign Gorgon LNG Supply Agreement

abarrelfullabarrelfull wrote on 08 May 2012 13:03

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August 10, 2009

An Australian subsidiary of Exxon Mobil Corporation (NYSE:XOM) and Petronet LNG Limited today signed a sales and purchase agreement (SPA) for the long-term supply of liquefied natural gas (LNG) from the proposed Gorgon LNG Project in Western Australia.

The SPA is for the supply of approximately 1.5 mtpa (million tonnes per annum) of ExxonMobil's share of LNG from the Gorgon LNG Project over a 20-year term. LNG cargoes will be delivered to a new terminal under construction at Kochi in southern India.
Documents formalizing the SPA were signed in Perth, Australia by ExxonMobil’s Luke Musgrave, vice president – Australia LNG, and Petronet LNG Managing Director, Prosad Dasgupta.

“This historic agreement is the first long-term sale of LNG from Australia to India,” said Mr. Musgrave. “We welcome Petronet LNG as a foundation customer for the Gorgon LNG Project and look forward to a long and successful relationship.”

Mr. Dasgupta said, “I am very pleased to finalise this long-term agreement for the provision of LNG to our new terminal in Kochi, supporting more than (US)$2 billion of related energy infrastructure investment in India. Energy consumers in Kerala State will now have access to a clean-burning base load fuel, which will enhance the economic development of the region and maintain the pristine ecology of Kerala.”

The Gorgon LNG Project, in which the ExxonMobil subsidiary holds a 25 percent share, will include three 5 mtpa LNG processing trains. A final investment decision is anticipated later this year.

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