MOSCOW, June 18 (RIA Novosti) – Russia’s gas giant Gazprom may increase its delivery of liquefied natural gas (LNG) to India’s GAIL corporation to 3.5 million tons annually with an option to extend the contract to up to 25 years, Gazprom Vice Chairman Alexander Medvedev said Wednesday.
“The contract has come into force with the capability of increasing the delivery of LNG to 3.5 million tons,” he said, adding that the contract will be for a period of 25 years.
At the beginning of October 2012, Gazprom’s subsidiary, Gazprom Marketing & Trading Singapore, signed a 20-year LNG supply contract with India’s GAIL.
Under the contract, the price for LNG will be based on a formula tied to the price of oil in terminals in India.
In 2011, Gazprom Marketing & Trading Singapore signed four memorandums on supplying LNG to India, including with Indian Oil Corporation Limited, Gujarat State Petroleum Company (GSPC) and Petronet LNG Limited (Petronet).
Gazprom was expected to supply up to 2.5 million tons of LNG annually to each of the Indian companies within 25 years.