India wants Qatar to lower gas price; Qatar says no to reopening existing contracts

India on Monday pressed its largest LNG supplier Qatar to lower the price of gas under the existing long-term supply contracts, a request that Doha turned down saying sanctity of contracts is important for the credibility of both sides. India imports 8.5 million tonnes per annum of LNG from Qatar under two long-term contracts with a rate linked to crude oil prices. Landed price of liquefied natural gas (LNG) comes to USD 9-10 per million British thermal unit while the same gas is available in the spot or current market at half the rate. The long-term contract with Qatar is the most expensive with volumes from Australia, Russia, and US on long-term contracts coming on cheaper rates.

Oil Minister Dharmendra Pradhan met Qatar Energy Minister Saad Sherida al-Kaabi to press for the “need for realignment of existing long-term LNG contracts with the market to suit the affordability of end consumers”.