India’s saving on the renegotiated long-term LNG supply deal between the country’s largest importer of the chilled fuel Petronet and Qatar’s RasGas, could amount to US$3 billion, according to the prime minister Narendra Modi.
Speaking during India’s Independence Day ceremony, Modi said that India is dependent on imports for energy and petroleum products, adding that the long-term contracts signed previously at fixed prices proved costly for the Indian economy.
He said that following renegotiations, India will save 20,000 crore rupees, which amounts to approximately $3 billion.
Under the initial deal signed in 1999, Petronet agreed to pay about $13 per million British thermal units, linking the price to the oil index closely reflecting the prevailing oil prices.
Earlier in May, LNG World News reported India’s minister for petroleum and natural gas, Dharmendra Pradhan saying the price under the revised contract worked out to less than $5 mmBtu on crude prices at the time.
In addition to the savings on the revised deal, Petronet avoided paying the $1.5 billion penalty for taking less LNG than it contracted for 2015.
LNG World News Staff