The Telegraph
Since 1st March, 1999
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Rasgas asked to cut LNG price

New Delhi, Nov. 24 (PTI): Worried about new gas discoveries replacing costlier liquefied natural gas (LNG), Petronet LNG Ltd— a consortium of public sector oil companies for import of LNG—has asked Rasgas of Qatar to bring down the price of gas for Dahej.

The demand by Gail, the main marketer of Qatari gas in India, comes amidst reports that co-operative fertiliser giant Iffco had started talks with Reliance, which discovered huge gas reserves off the east coast, for feedstock within months of envisaging interest for equity participation in Petronet.

However, Gail’s demand for lowering the LNG price linked to a basket of crude oil with floor and ceiling price of $ 16 and $ 24 per barrel fixed in July, is being resisted by Rasgas which feels Petronet’s promoters have not met the set milestones, sources close to negotiations said.

Rasgas wants principal offtaker of Dahej gas to enter into firm gas sales and purchase agreement before reopening LPG pricing, they said.

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