Petronet LNG Looking for Additional LNG from Qatar at 'Affordable' Price

Petronet LNG is in talks with Qatar to buy additional 2.5 million tonnes (mt) LNG annually and negotiations related to price are at a critical stage, report Business Line newspaper.

According to the newspaper, the Indian firm is bargaining hard with Qatar to get additional liquefied natural gas (LNG) at the current long-term contract rates of around $13/mBtu.

However, Qatar has been seeking the spot rates, which is currently prevailing between $17 and $18 a unit.

Petronet LNG has a long-term contract to buy 7.5 mt from Qatar and now Petronet is trying to convince the Gulf country to extend the current contract by another 2-3 mt annually at an ‘affordable’ price, company’s Managing Director and CEO AK Balyan told Business Line.

“We have moved quite a bit on that. Actually, we have narrowed a lot and they have also realised. The Indian market still needs the support (discounted rates). It should not be equated with Japan, (South) Korea and Taiwan,” said Balyan.

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