
Cheniere Energy has commenced a shipment of US-sourced liquefied natural gas (LNG) to India from its Sabine Pass liquefaction facility in Louisiana, US.
The shipment is the first to be made according to a 20-year sale and purchase agreement (SPA) with GAIL (India) that was signed in December 2011.
Under the agreement, Cheniere is required to sell and deliver around 3.5 million tonnes of LNG per year to GAIL.
Cheniere Energy’s president and CEO Jack Fusco said: “The commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL.
“India remains an important market for LNG, and one that we hope will continue to show signs of growth.
“We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India.”
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By GlobalDataGAIL has a market share of 75% in gas transmission in India, while its gas trading share is more than 50%.
GAIL chairman and managing director Tripathi said: “With supplies commencing from the US, GAIL will have a diversified portfolio both on price indexation and geographical locations.
“This long-term agreement would go a long way in strengthening the relationship between GAIL and Cheniere and reinforcing India-US trade ties.”
The company intends to make an investment of more than $3bn to expand its pipeline network by 4,000km to operate around 15,000km by 2020.