India’s Petronet close to signing long-term LNG deal around spot prices
In a first, India’s biggest LNG importer Petronet on Tuesday said it is close to signing a long-term LNG deal benchmarked to daily or spot prices, which generally are lower than standard rates of such contracts.
India bought liquefied natural gas (LNG) under long-term contracts from Qatar and Australia at an average of USD 3.5-4.5 per million British thermal unit in the current quarter. Spot or current prices of LNG – gas turned into liquid at sub-zero temperature for ease of transporting in ships – are in the range of USD 2.
“We are very close to a long-term deal on the daily benchmark. There will be a long term deal but on a daily benchmark,” Petronet LNG Ltd CEO and Managing Director Prabhat Singh told reporters here.
