Millennium Post

GAIL signs pact with Spanish firm

GAIL (India) Limited has signed an LNG supply agreement with Gas Natural Fenosa, Spain.

Under the agreement, GNF shall ensure a total supply of approx.. 3 bcm (billion cubic meters) of LNG to GAIL over the next three years. The supply shall begin January 2013, and is the largest contract of the Spanish multinational in this region.

This agreement with Gas Natural Fenosa is yet another effort by GAIL towards bridging the gap in demand supply of natural gas in the Indian market. This is in addition to other initiatives of GAIL towards LNG sourcing, creating LNG regasification infrastructure and augmenting transmission capacity significantly during the next two to three years. GAIL will continue to make assiduous efforts to tie-up affordable LNG in its portfolio to meet the rapidly growing energy demand of the Indian market.

Speaking on this occasion CMD GAIL, B C Tripathi said, ‘the signing of the Gas Supply and Industrial cooperation agreements is a significant step as it augurs an enduring partnership between the two companies in working towards securing additional LNG volumes for long term energy security of India, exploring bigger opportunities along the Gas value chain both in India and abroad. This is a key milestone in the chapter of Indo-Spanish energy cooperation.’

In addition to the supply agreement, the two companies have signed an industrial cooperation agreement in order to explore joint development of energy projects in India. Gas Natural Fenosa and GAIL would collaborate opportunities in gas distribution, wholesale marketing and infrastructures in India as well as in projects abroad.

With this agreement, the Spanish multinational, will be able to establish a framework for cooperation with GAIL and leverage its expertise of operating in the energy markets of Spain, Latin America etc. in the promising Indian LNG market in the coming years. In the first half of 2012, the international activities of Gas Natural Fenosa represented 42.2% of EBITDA, compared to 34.4% in the same period of 2011. Gas Natural Fenosa is one of the leading multinational companies in the gas and electricity sector; it operates in 25 countries and has around 20 million customers and a 15.4 gigawatt power generation capacity.

It is the largest integrated gas and electricity company in Spain and Latin America, the leader in natural gas sales in the Iberian Peninsula and the biggest natural gas distributor in Latin America. With a fleet of 11 methane tankers, it is one of the largest operators of liquefied natural gas in the world and a company of reference in the Atlantic and Mediterranean basins, where it operates 30 bcm.In order to meet the growing demand, GAIL has been expanding its global presence to secure long term gas supplies.
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