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.
Japan PM says Fukushima wastewater release can’t be delayed
Kashmiris not involved in recent civilian killings: Farooq Abdullah
Decide on CM post will be taken after winning 2023 assembly election: Siddu
Related Articles More
FinMin to seek Cabinet nod for setting up company to monetise land assets of privatisation-bound CPSEs
India has right to 30% stake in Iranian gas field even after contract to local firm
Gold ETFs attract Rs 446-cr in Sep; inflow may continue in coming months on festive season demand
Procurement of expensive aircraft parts to be done after approval of senior official: Air India
HDFC Results: Bank’s Q2 consolidated profit rises 18% to Rs 9,096 crore