India’s state-owned GAIL has finalized renegotiations with Russia’s Gazprom over a 20-year, 2.5-MMt/y long-term deal on an ex-ship basis. GAIL has received the annual delivery program for 2018 and deliveries are expected to start in the second quarter.
Pricing for the deal, originally done at a 13.6% slope to Brent plus $1.50/MMBtu constant, has been revised to less than 12% of Brent for the first three years. The pricing goes up to a 13.2% slope for the rest of the contract. The average pricing for the deal works out to slightly less than Petronet-RasGas’ renegotiated deal, which was done at a 12.67% slope to Brent plus a 6¢ constant.
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