An Australian subsidiary of Exxonmobil Corporation and Petronet LNG Limited Monday signed a sales and purchase agreement for the long term supply of LNG from the proposed LNG project in Western Australia.
According to ExxonMobil release, the SPA is for the supply of approximately 1.5 mtpa (Million tonnes per annum) of ExxonMobil’s share of LNG from the Gorgon LNG Project over a 20 year term. LNG cargoes will be delivered to a new terminal under construction at Kochi in Southern India.
Documents finalising the SPA were signed in Perth, Australia by ExxonMobil’s Luke Musgrave, Vice President, Australia LNG and Petronet LNG managing director Prosad Dasgupta.
“This historic agreement is the first long term sale of LNG from Australia to India,” said Mr Musgrave. “ We welcome Petronet LNG as foundation customer for the Gorgon LNG project and look forward to a long and successful relationship.”
Mr Dasgupta said,” I am very pleased to finalise this long term agreement for the provision of LNG to our new terminal in Kochi, supporting more than US$2 billion of related energy infrastructure investment in India. Energy consumers in Kerala will now have an access to clean burning base load fuel, which will enhance the economic development of the region and maintain the pristine ecology of Kerala.”
The Gorgon LNG project in which the ExxonMobil subsidiary holds a 25 percent share, will include three 5 mtpa LNG processing trains. A final investment is anticipated latter this year.
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