GAIL loads first Sabine Pass LNG cargo under 20-year SPA
Houston-based LNG exporter Cheniere Energy and India’s GAIL marked the commencement of their 20-year sale and purchase agreement (SPA), with one of GAIL’s first shipments departing from the facility.
The ship will set sail after the ceremony to marking the occasion at Sabine Pass liquefaction facility in Louisiana, Cheniere said in a statement on Monday.
The SPA, which was signed in December of 2011, commenced on March 1. Under the terms of the SPA, Cheniere will sell and make available for delivery to GAIL approximately 3.5 million tonnes of LNG per year.
“India remains an important market for LNG, and one that we hope will continue to show signs of growth,” Cheniere’s president and CEO Jack Fusco said.
Speaking about the deal, GAIL chairman and managing director B.C. Tripathi said that, “GAIL is one of the foundation customers of Cheniere having signed the contract in 2011.”
He added that the commencement of the US supplies to GAIL, the company’s portfolio will be diversified on price indexation and geographical locations.