New Delhi, April 30 -- State-run Indian Oil Corp. Ltd (IOCL) has signed a term contract with commodities trading major Trafigura for supply of liquefied natural gas (LNG) for a five-year period, said Arvinder Singh Sahney, the chairman and managing director (CMD) of Indian Oil.

Addressing the media on Wednesday, the CMD said that the deal is valued around $1.3-1.4 billion and pricing of the LNG would be based on the US Henry Hub benchmark price. Supplies are likely to begin the second half of this year.

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"We are looking at (supplies of) around 2.5 million tonnes (mt), 27 cargoes spread over 5 years starting from H2 of this year at around $1.3-1.4 bill...