India’s biggest LNG importer Petronet has closed in on a deal which will ensure long term natural gas supply to India ensuring the nations energy needs.The long-term LNG deal, benchmarked to daily or spot prices, which are often less than normal rates will provide natural gas at cheapest rates.
The CEO and Managing Director of Petronet LNG, Prabhat Singh with out disclosing the details of the supplier said that the company was initially looking to buy 1 million tonnes of LNG under such a contract and aimed to further increase the capacity depending on the customer’s response. He further said that nearly 13 suppliers have showed interest in providing LNG to Petronet.
The PSU firm GAIL India has also contracted 5.8 million tonnes of LNG from the US-benchmark rates. Earlier India had bought liquefied natural gas (LNG) under long-term contracts from Qatar and Australia at an average price of USD 3.5-4.5 per million British thermal units in the current quarter while the spot prices of LNG are in the range of USD 2.
Recently opening the petroluem sector to privatisation,Petroleum Minister Dharmendra Pradhan said India will gradually end central controls on gas pricing as it seeks to attract foreign investment and technology to lift local output,calling in foreign investors to take full advantage of their wished price and marketing freedom to gain and invest more.