Qatar has agreed to lower the price of gas it sells to India on a long-term contract by about $6 billion to reflect the slump in global energy rates and also waived the Rs 12,000-crore penalty for ‘short-lifting’ in 2015. <\/p>\n
Petronet LNG Ltd (PLL), India’s biggest gas importer, today signed a revised contract with RasGas of Qatar. The price as per the revised formula will come to $6-7 per million British thermal unit as against USD 12-13 per mmBtu currently, oil minister Dharmendra Pradhan said. <\/p>\n
Pradhan said the reworked formula will apply to 7.5 million tonnes a year of LNG India buys from RasGas on a long-term contract ending in April 2028. <\/p>\n
The revised formula will base the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan, with a rider that PLL buys an additional 1 million tonnes of LNG annually. <\/p>\n
The trailing three-month average Brent price is about USD 44 a barrel while the average of Japan Crude Cocktail for the 5-year period ended September 30 was USD 94. <\/p>\n
Pradhan said Qatar will also not seek Rs 12,000 crore from PLL for ‘under-lifting’ LNG from RasGas by 32 per cent. <\/p>\n
The value of the under-lifted cargoes in 2015 is Rs 12,000 crore and if the change-to-price formula was implemented, it would suggest a USD 2.5 billion buyer saving over three years. <\/p>\n","protected":false},"excerpt":{"rendered":"
Qatar has agreed to lower the price of gas it sells to India on a long-term contract by about $6 billion to reflect the slump in global energy rates and also waived the Rs 12,000-crore penalty for ‘short-lifting’ in 2015. Petronet LNG Ltd (PLL), India’s biggest gas importer, today signed a revised contract with RasGas of Qatar. The price as per the revised formula will come to $6-7 per million British thermal unit as against USD 12-13 per mmBtu currently, oil minister Dharmendra Pradhan said. Pradhan said the reworked formula will apply to 7.5 million tonnes a year of LNG […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-48847","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/48847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=48847"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/48847\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=48847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=48847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=48847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}