State-run gas company GAIL (India) marked a milestone on Friday with the arrival of a liquefied natural gas (LNG) cargo sourced from Cheniere’s Sabine Pass LNG plant in Cameron Parish, Louisiana.
GAIL-chartered LNG tanker, Meridian Spirit with the capacity to transport 165,500 cubic meters of the chilled fuel, on Friday docked at the Dabhol terminal operated by Ratnagiri Gas and Power.
The cargo was delivered under a 20-year sale and purchase agreement (SPA) between GAIL and the Houston-based Cheniere.
Under the terms of the SPA signed in 2011, Cheniere will sell and make available for delivery to GAIL approximately 3.5 million tonnes of LNG per year.
India’s minister of petroleum & natural gas, Dharmendra Pradhan, in a comment through his social media channels said the first delivery under the long-term SPA strengthens the energy relations between USA and India.
In addition to the deal with Cheniere, GAIL has also signed a Tolling Agreement with Dominion Cove Point for 2.3 MTPA, supplies for which would commence to India from April 2018.
These two contracts are valued at $2 billion per year at current prices, Pradhan said.
He further noted that the demand for natural gas in India will grow in relation to the growth trajectory until 2029-2030.