Natural Gas

The government has renegotiated the LNG contract between Petronet LNG Ltd (PLL) and Qatar based RasGas and saved about Rs 8,000 crore in the new deal.

PLL is importing 7.5 million tonnes of LNG per year under an agreement with RasGas Qatar since 2004 on long term basis for 25 years. This agreement is valid till 2028. The price of imported LNG under this agreement had linkage to crude oil (Japanese Customs Cleared Crude – JCC) and had a concept of floor and ceiling linked to last five years average of JCC.