Cheniere Energy has commenced a shipment of US-sourced liquefied natural gas (LNG) to India from its Sabine Pass liquefaction facility in Louisiana, US. Shipment is the first to be made according to a 20-year sale and purchase agreement (SPA) with GAIL (India) that was signed in December 2011. Under the agreement, Cheniere is required to sell and deliver around 3.5 million tons of LNG per year to GAIL.
Cheniere Energy’s president and CEO Jack Fusco said: “Commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL. “With supplies commencing from the US, GAIL will have a diversified portfolio both on price indexation and geographical locations.” “India remains an important market for LNG, and one that we hope will continue to show signs of growth. “We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India.”