Economic Times: Indian Oil Corp Will Not Ink Long-Term LNG Price Deals

Indian Oil Corporation (IOC), the country's largest refiner and fuel retailer, will not enter into long-term price contracts with liquefied natural gas (LNG) suppliers, drawing lessons from the fiasco where staterun Petronet LNG has been forced to purchase expensive LNG to honour an old contract but struggles to sell it further to consumers. 

The company would have a long-term agreement only for the quantity of gas and not for the price, AK Sharma, director (finance), told ET in an interview. "This would be to ensure that there is no shock to consumers," Sharma said.

IOC just wants to avoid the difficulty Petronet LNG, which it co owns with other state oil firms, is caught in. MORE