(EnergyAsia, September 1, Tuesday) — Exxon Mobil Corporation said an Australian subsidiary has agreed to the long-term supply of liquefied natural gas (LNG) to India’s Petronet LNG Limited from the proposed Gorgon LNG project in Western Australia.
The agreement covers the supply of 1.5 million tonnes per year (million t/y) of ExxonMobil’s share of LNG from the project over a 20-year term. LNG cargoes will be delivered to a new terminal under construction at Kochi in southern India.
The Gorgon LNG project, in which the ExxonMobil subsidiary holds a 25% share, will include three five-million t/y LNG processing trains.
Together with ExxonMobil, operator Chevron (50%) and Shell (25%) are expected to make a final investment decision on the project later this year.
Luke Musgrave, ExxonMobil’s vice president for Australia LNG, said:
“This historic agreement is the first long-term sale of LNG from Australia to India. We welcome Petronet LNG as a foundation customer for the Gorgon LNG project and look forward to a long and successful relationship.”
Petronet LNG managing director, Prosad 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 state will now have access to a clean-burning base load fuel, which will enhance the economic development of the region and maintain the pristine ecology of Kerala.”