RasGas and Petronet LNG enter SPA

RasGas Company Ltd, Qatar and Petronet LNG Ltd, India have entered into a binding sale and purchase agreement (SPA) for supply of an additional 1 million tpy of LNG to India starting this year for onward sale to four Indian entities: Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd, GAIL (India) Ltd and Gujarat State Petroleum Corp.

RasGas and Petronet LNG Ltd have also entered into a binding agreement to adjust some aspects of their existing long-term LNG SPA of 7.5 million tpy, signed by the parties in 1999, which laid the foundation for the LNG business in India. The adjustments are intended to 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, Hamad Mubarak Al-Muhannadi, commented: “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, 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.”

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/04012016/rasgas-and-petronet-lng-enter-spa-1821/