GEV and Indian Oil Corporation Limited execute Heads of Agreement for the Purchase of CNG
GEV has executed a Heads of Agreement with Indian Oil Corporation Limited to commence negotiations on a Gas Sale Agreement for the supply of ~220MMscf per day (~1.5 mtpa of LNG equivalent) to the west coast of India.
GEV is responsible for securing gas volumes from the Middle East region and has identified three potential gas sources in the Middle East region, all within a distance of ~2,500km from the Gulf of Cambay.
The HOA contemplates that GEV will deploy a fleet of six CNG Optimum 200 ships to deliver the required 220MMscf of gas per day on a continuous basis. GEV will now proceed to select an import terminal site in the Gulf of Cambay.
Indian Oil Corporation Limited is one of India’s largest commercial organizations, featuring in the list of Fortune Global 500 companies and is, inter-alia, engaged in the business of exploration, refining, sale of petroleum products and natural gas, import of crude and petroleum product and marketing thereof.
GEV Chairman & CEO, Maurice Brand
With the HOA now signed with Indian Oil Corporation, GEV will progress its discussions in sourcing gas from the Middle East region and to assist with these negotiations, GEV has recently engaged Lewis Affleck as its Strategic Advisor for Middle East Gas Supply. GEV will also move to secure a suitable CNG Import location at or near the Port of Dahej which is connected to the national Indian gas pipeline network.
Considering India’s current demand and growth projections, GEV fully expects marine CNG supply into the west coast of India to expand from this initial 220 MMscf/d to over 650 MMscf/d (~5.0 mtpa of LNG equivalent) as a realistic target, supported by CNG’s relatively low capital costs compared to LNG for the regional delivery of gas.
About Indian Oil
Indian Oil Corporation Limited is India’s flagship national oil company with business interests straddling the entire hydrocarbon value chain, ranging from refining, pipeline transportation, and marketing of petroleum products to exploration and production of crude oil and gas and marketing of natural gas and petrochemicals.
Based in its corporate announcements:
• Annual turnover of over US$ 65 billion;
• Listed on the National Stock Exchange of India, 56.98% owned by the Government of India;
• 11 refineries with 80.7 MMtpa capacity, 33% of domestic refining capacity; 13,200+ km of pipelines; 44.3% petroleum market share in FY18, 2nd largest domestic player in petrochemicals.