Asia needs flexible LNG deals not linked to oil prices: Dharmendra Pradhan
Asia needs flexible liquefied natural gas (LNG) contracts with no links to oil prices to reflect changes to the market as demand recovers from the impact of the coronavirus pandemic, India’s oil minister Dharmendra Pradhan said on Thursday.
Pradhan said gas buyers and sellers need to adjust to changing market dynamics after lower spot gas prices in last two years have encouraged buyers to favour short-term and spot deals instead of long-term oil-linked deals.
“The LNG price determination for Asian consumers is still oil-linked, and this requires an urgent revision,” Pradhan said at an International Energy Forum event.
India, the world’s fourth largest liquefied natural gas importer, is aiming to raise the share of gas in its energy mix to 15% by 2030 from the current 6.3% and is investing $60 billion by 2024 to strengthen infrastructure.
