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India-based Petronet LNG has entered into an agreement with oil major ExxonMobil Corp for procuring liquefied natural gas (LNG) from its Gorgon project in Australia. Under the deal, Exxon's subsidiaries, Mobil Australia Resources Company and Mobil Exploration & Producing Australia will annually supply 1.5 million metric tons of LNG to Petronet's Kochi terminal in Kerala.
While informing about the new deal, Petronet CEO Prosad Dasgupta said that Indian company will buy LNG for 20 years, beginning from 2014. Exxon is also ready to sell another 1.3 million tonnes of LNG to Petronet but the Indian buyer has not yet committed to additional volumes. However, none of the companies gave any financial details of the Gas Sales and Purchase Agreement (GSPA), but hinted that the pact will be finalised before June 30.
Speaking about the new agreement, ExxonMobil's Luke Musgrave said that the company is pleased to tie up with Petronet for the supply of liquefied natural gas from the Gorgon Project. The Gorgon Project is operated by Chevron Corp with 50 percent stake while Exxon Mobil and Royal Dutch/Shell hold 25 percent each. Meanwhile, the Gorgon Project is considering to develop the Greater Gorgon gas fields, which is supposed to contain resources of about 40 trillion cubic feet of gas.
