International: GAIL, GDF SUEZ sign LNG supply agreement

By Romel S. Gurky

GAIL (India) Limited and GDF SUEZ have concluded a medium term LNG supply agreement for supply of 12 cargoes 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 220 billion cubic meters in 2020, representing a CAGR of over 18 percent, the company stated in a press statement received by Petromindo.com on Friday.

Speaking on the occasion, B.C.Tripathi, Chairman and Managing Director of GAIL (India) Limited said that the agreement with GDF SUEZ was 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 re-gasification infrastructure and augmenting transmission capacity significantly during the next two to three years.

?With this step, we look forward to strengthening 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,? he said.

Jean-Marie Dauger, Executive Vice President of GDF SUEZ in charge of the global gas & LNG business line said that signing the 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,? he said.

According to him, 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?s strategic commitment to the region and allow the Group to build on these strong relationships to develop all its businesses.

Editing by Benget Besalicto Tnb.