Petronet to stop buying spot cargoes as Gorgon LNG deliveries start

Petronet LNG, India’s largest importer of liquefied natural gas, plans to abandon spot cargo purchases in the fiscal year 2018.

The company will start receiving cargoes under its long-term supply contract with ExxonMobil from the Chevron-operated Gorgon LNG project in Australia, Reuters reports citing Petronet LNG’s CEO, Prabhat Singh.

The first cargo from the Gorgon LNG project has been delivered in January, Singh said, adding that it was priced below the current spot prices.

Also commenting on the deliveries from the Gorgon LNG project, Petronet’s chief financial officer R.K Garg, said the second cargo from the $54 billion project located on Barrow Island is expected to arrive in March.

Under its contract with ExxonMobil, Petronet is scheduled to receive 1.5 million tons of LNG per year from the Gorgon project for a period of 20 years. R.K Garg noted that this translates to 18 cargoes per year in larger vessels.

LNG World News Staff