Qatar to sell half-price LNG to India’s Petronet

• 8 years ago (2015-12-31)

Middle East 317

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The deal marks Indian Prime Minister Narendra Modi’s biggest diplomatic win in establishing India as one of the world’s biggest energy consumers. Furthermore, the deal also represents how falling oil prices and plentiful gas supplies are pushing exporters to offer better deals to keep their market share.

The new contract stipulates that Rasgas will supply LNG to Petronet at $6 or $7 per million British thermal units (mmBtu) from the beginning of January, a price that is much lower than the $12 or $13 mmBtu agreed earlier, according to Indian Oil Minister Dharmendra Pradhan.

“It’s a win-win situation for both partners.” Pradhan said. “Qatar has been a good business friend, but we’re now moving from the relationship of a buyer and a seller to long term partners.”