Press Release

Singapore, London and Delhi – 30th May 2011, Petronet LNG Limited (Petronet) and Gazprom Global LNG (GGLNG), through its Singapore affiliate, Gazprom Marketing and Trading Singapore (GM&TS), a 100% subsidiary of Gazprom Marketing & Trading, have concluded a memorandum of understanding for the long term supply of LNG.

Under the terms of the agreement, Petronet will receive up to 2.5 million tonnes per annum of LNG from GM&TS’ international supply portfolio for up to 25 years.

This transaction illustrates the Parties’ objective to develop a direct long-term relationship after GM&TS’ successfully delivery of a number of spot cargoes via third party arrangement in Petronet’s Dahej LNG terminal.

GM&TS sees India as one of its key markets for LNG supplies, which also include Japan and other North Asian countries, as it continues to strengthen its presence and operations in Asia-Pacific. This supports Petronet in its vision to become a key energy provider to the nation by leveraging the company’s unique position in the LNG value chain along with an international presence.

"This MOU is a key step in diversifying our LNG supply portfolio and this relation will go long way in developing mutually beneficial relation between the two Companies“ said Mr A K Balyan, Managing Director and CEO."

Nigel Kuzemko, Gazprom’s Singapore-based Director of LNG Development said; "We are delighted to have entered into this agreement with Petronet, given their proven operational capability and their key role as aggregator of LNG in India, we see Petronet as a strong strategic partner for Gazprom Marketing & Trading Singapore."

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About Petronet

Petronet LNG Limited, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat with present capacity of 10 MMTPA, and is in the process of building another 5 MMTPA terminal at Kochi, Kerala.

Petronet LNG is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

For further information, please visit: http://www.petronetlng.com

Gazprom Marketing & Trading Singapore (Pte.) Limited

Gazprom Marketing & Trading GM&T Singapore started operations as a platform for LNG trading, shipping and originating carbon reduction projects in the Asia Pacific markets.

We have developed a wide range of emission reduction projects in the region under the Clean Development Mechanism of the Kyoto Protocol. GM&T Singapore is helping to build a significant and sustainable carbon business with access to European, Japanese and other emerging markets.

The business has also extended the Group’s commodity reach beyond its core portfolio offering by launching a trading desk specialising in crude, LPG and currency. GM&T has been trading financial oil products on a number of exchanges since 2006 and can now offer 24-hour coverage of the market between Singapore, London and Houston.

For further information, please visit: www.gazprom-mt.com