Indian state-owned company GAIL (formerly Gas Authority of India Limited) welcomed the first batch of liquefied natural gas (LNG) under a contract with Russian company Gazprom. As reported by GAIL in its official microblog on Twitter, the first batch of LNG was received at the terminal Petronet LNG Ltd (PLL) in the state of Gujarat.
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Gail (India) Limited (GAIL) is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi and has the following business segments: natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemical, city gas distribution, exploration and production, GAILTEL and electricity generation.
GAIL was the first public sector company in India to receive LNG from Russia in the long term, the report said. Gazprom and Indian state-owned oil and gas company GAIL signed a long-term gas contract in 2012. The document assumes deliveries of LNG in the amount of 2.5 million tons per year for 20 years. On January 16, 2018, both GAIL and Gazprom agreed on amending the contract by adjusting the price and volume of the LNG.
According to the contract, GAIL will receive almost 6 million tonnes of LNG, more than originally proposed. The prices for LNG have been tied to the price of Brent crude oil, and not to oil prices at terminals in India.