Indian Oil Corp to buy LNG from US

Indian Oil Corp (IOC) has signed an interim deal with Mitsubishi Corp to buy 0.7 million tonnes (MT) a year of LNG from US on a long-term contract beginning 2018, news agency Press Trust of India reported Friday.

"To secure LNG supplies, IOC has forayed into independent LNG purchase," IOC Chairman B Ashok told reporters.

The LNG will be supplied by the Japanese firm for 20 years from Cameron LNG project in US, Press Trust quoted Ashok as saying. The price is indexed to Brent crude.

Last year, Indian Oil signed a deal with Progress Energy for the acquisition of a 10 percent interest in Progress Energy Canada’s shale gas assets in northeast British Columbia and in the proposed Pacific NorthWest LNG project. As part of the deal, IOC shall also offtake 1.2 million tons per annum (MTPA) of LNG, which represents 10 percent of the LNG facility’s production, for a minimum period of 20 years,

LNG from US will be imported at IOC's proposed Ennore import terminal in Tamil Nadu. The 5 MTPA terminal is expected to come online in 2017-2018.