RIA Novosti reported that Gazprom Marketing and Trading Singapore part of Russian energy giant Gazprom, has signed a 20 year liquefied natural gas supply contract with India’s GAIL.

The deal follows the signing of a Basic Framework Agreement between the two companies on May 18, 2011.

GM&TS said in a statement that “Under the terms of the agreement, GAIL will receive 2.5 million tons per annum of LNG (equivalent to approximately 3.5 bcm per annum) over a period of 20 years.”

Under the contract, LNG will be sustainably priced with an oil-indexed formula and delivered to the Dahej, Dabhol and Kochi terminals in India.

Gazprom Marketing & Trading CEO Vitaly Vasiliev said that “We are delighted to have signed this agreement with GAIL during a period of rising demand for LNG in India. We are looking forward to working together with GAIL to help meet India’s expanding gas demand whilst securing a long-term market for Russian gas.”

Source - RIA(www.steelguru.com)