Leading natural gas company GAIL on Tuesday said it has re-negotiated the "price and volume" of the long-term LNG sale and purchase agreement (SPA) with Russia's Gazprom.
According to the company, the two parties have agreed to an "adjustment to the price and volume of LNG" supply.
"The two parties have agreed to an adjustment to the price and volume of LNG supply thus enabling GAIL to develop incremental gas markets to offtake these volumes thereby mitigating volume risk," the company said in a statement.
Gail had entered into a long-term LNG SPA building up to 2.5 MMTPA on a DES (Discharge-ex-Ship) basis with Gazprom Marketing & Trading Singapore (GMTS) in 2012.
The LNG supplies under the agreement are scheduled to start from the second quarter (Q2) of 2018.
"This agreement is a key mile stone affirming partnership of GAIL and Gazprom in developing LNG markets under Indo-Russia trade relationship," B.
C. Tripathi, Chairman and Managing Director of GAIL (India), was quoted as saying in the statement.
The SPA was signed in 2012 for a 20-year liquefied natural gas (LNG) sales and purchase agreement following the signing of an earlier Basic Framework Agreement (BFA) by the two companies on May 18, 2011.
--IANS
rv/dg
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)