GAIL and GDF SUEZ sign LNG Supply Agreement

abarrelfullabarrelfull wrote on 27 Aug 2012 19:59
Tags: asia gail gdf-suez india lng

Latest News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/killajoules.wikidot.com\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"3","module_body":"* %%linked_title%%"}}
  • Want a weekly review of refining news?

GAIL (India) Limited and GDF SUEZ have concluded a medium term LNG agreement for the supply of 12 cargoes by GDF SUEZ from 2013 to 2014, representing a total of 0.8 million tons.

This agreement will contribute to supply the Indian gas market, which is expected to grow from 58 billion cubic meters in 2012 to 110 billion cubic meters in 2020, representing a growth of 87%(1).

Speaking on the occasion, Mr. B C Tripathi, Chairman and Managing Director, GAIL (India) Limited said “This Agreement with GDF SUEZ is yet another step by GAIL to bridge the demand supply deficit of the Indian market in the medium term. This is in addition to other initiatives of GAIL towards LNG sourcing, creating LNG regasification infrastructure and augmenting transmission capacity significantly during the next two to three years. With this step, we look forward to strengthen our partnership with GDF SUEZ in the future. GAIL will continue to make assiduous efforts to tie-up affordable LNG in its portfolio to meet the rapidly growing energy demand of the Indian market.”

Jean-Marie Dauger, Executive Vice President of GDF SUEZ in charge of the Global Gas & LNG business line said “Signing this LNG supply agreement with GAIL, the largest gas transport and marketing company in India, is a real satisfaction for GDF SUEZ. Our natural gas portfolio is permanently optimized and thanks to its flexibility we are able to direct LNG volumes to the Asian market in response to its increasing LNG demand. Between 2010 and 2016, GDF SUEZ is planning to deliver about 10.8 million tons to Kogas, CNOOC, Petronas, Petronet, PTT and GAIL. These agreements with key Asian energy players show GDF SUEZ strategic commitment to the region”.

Note to editors:

In order to meet the growing appetite of Indian market, GAIL has been expanding its global presence to secure long term gas supplies. GAIL earlier signed a 20 year Sales and Purchase Agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for supply of 3.5 million tonnes per year of LNG. GAIL has also executed the Gas Sales Purchase Agreement with Turkmengaz for 38 mmscmd for 30 year supply through the TAPI pipeline. Besides, GAIL has also set up a wholly- owned subsidiary company GAIL Global (Singapore) Pte. Ltd. in Singapore for sourcing LNG, and petrochemicals. GAIL has acquired 20% interest in Carrizo’s Eagle Ford Shale acreage position in USA.

GAIL owns and operates over 9500 Km of high pressure cross country natural gas pipeline network and can handle 175 mmscmd and is in the process of significantly increasing its pipeline network to reach every part of India. Within the next two to three years, GAIL will have a pan-India natural pipeline infrastructure spanning over 14,500 km and can handle volumes over 300 mmscmd. To secure import of LNG, GAIL is at an advance stage of commissioning 5 mmtpa LNG terminal of RGPPL at Dabhol in Western Coast of India and spread a huge network of pipeline to take natural gas to customers across the country. GAIL ’s natural gas pipeline from Kochi is at an advanced stage of commissioning phase-I and it connects to Kochi LNG terminal. Recently, GAIL won the rights to lay 1,550 km long natural gas pipeline from Western to Eastern Coast- Surat to Paradip Pipeline project.

GDF SUEZ has a strong involvement in LNG activities in India. Since 1997, GDF SUEZ has been a strategic partner of Petronet LNG Ltd (PLL), a company in which it holds a 10% stake. In November 2011, GDF SUEZ and PLL signed an agreement for the delivery of 9 cargoes over 2012.

In April 2012, GDF SUEZ has also been selected by Andhra Pradesh Gas Distribution Corporation (APGDC), as strategic partner for the development of a floating LNG import terminal project, on the East coast of India. The import terminal has a 3.5 mmtpa envisaged capacity and is expected to use a floating storage and regasification unit (FSRU). If final investment decision is granted, GDF SUEZ will have a 26% stake in the import terminal project and will have access to equity regasification capacities. APGDC is a joint venture between GAIL Gas and Andhra-Pradesh Gas Infrastructure Corporation (APGIC).


Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License