BusinessLine: Petronet to Renegotiate Australia Gas Price

After successfully renegotiating the gas price with Qatar, Petronet LNG Ltd (PLL) feels that the rates for purchasing gas under its contract with Exxon’s Gorgon project in Australia can be revisited.

The Australian contract was signed in 2009, when liquefied natural gas (LNG) sources were limited, resulting in higher prices. But now with the market dynamics changing, PLL will push for renegotiation, a senior company executive told BusinessLine.

However, the company would like to do this closer to the offtake.

The Gorgon gas is expected between end 2016 and early 2017.

This contract is with Mobil Australia Resource Company Pty Ltd for assured LNG supply of 1.4 million tonnes annually for 20 years. The buzz for renegotiation had gained momentum when gas rates were at a peak and the contracted fuel was ending up being the most expensive gas country has imported. MORE