India asks Qatar to reduce gas price supplied under long-term deal
PTI, Jan 28, 2020, 4:19 PM IST
New Delhi: India on Monday pressed its largest LNG supplier Qatar to lower the price of gas supplied under long-term contract to reflect falling rates of the spot or current market, Oil Minister Dharmendra Pradhan said.
Qatar supplies 8.5 million tonnes of liquefied natural annually to India at a price linked Brent crude oil. Landed price comes to $9-10 per million British thermal units, while the same gas is available in the spot market at half the rate.
After talks with visiting Qatari Energy Minister Saad Sherida Al-Kaabi, Pradhan said, “LNG contracts should reflect current market reality”.
“All energy producers have to revisit this old practice (of pricing LNG linked to oil) and come to new methodology reflecting demand-supply,” he said.
India has in the past used its status as Asia’s third-largest LNG buyer to renegotiate deals with Qatar, Australia, and Russia. In 2015, it renegotiated the price of the long-term deal to import 7.5 million tonnes per year of LNG from Qatar, helping in saving Rs 8,000 crore.
In 2017, it got ExxonMobil Corp to lower the price of Gorgon LNG and a year later convinced Gazprom to lower rates also.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Reverse migration has begun, says FM Nirmala Sitharaman
Markets sustain winning streak — Sensex jumps over 560 points, Nifty tops 22,300-level
Sensex climbs 640 points, Nifty tops 22,300-level in early trade
Insurance regulator IRDAI abolishes age restriction on health insurance product
Elon Musk says India visit delayed due to Tesla obligations
MUST WATCH
Latest Additions
Why has BJP not responded to plight of areca nut-coffee growers, asks Jayaprakash Hegde
DRDO develops country’s lightest bulletproof jacket for protection against highest threat level
LS Polls 2024: Modi does not do politics on religion basis, says Rajnath Singh
Delhi court extends judicial custody of Arvind Kejriwal till May 7
Amit Shah holds massive roadshow in Bengaluru