New Delhi, Sept. 25: Qatar-based Rasgas has agreed to lower the price of liquefied natural gas (LNG) for Petronet LNG to help the public sector company match the lowest price for LNG in the Indian market.
Rasgas vice-chairman Ibrahim B. Ibrahim today held discussions with senior Petronet LNG officials — Gail (India) chairman Prashanto Bannerjea and ONGC chairman Subir Raha. The development comes as a shot in the arm for the company floated by public sector giants ONGC, Gail and Indian Oil Corporation.
Raha told The Telegraph that Petronet LNG would match the cheapest price in the Indian market while providing an assured supply of gas to its customers. “The price would have to be one at which a formal deal is signed rather than the one mentioned in MoUs or in press statements,” he added.
Other companies such as Shell and British Gas have been claiming that they will supply LNG at a price of around $3 per million British thermal units (BTU).
However, the agreement signed with Rasgas earlier when Vazapathi Ramamurthy was the petroleum minister had allowed for an open-ended LNG price linked to international crude prices.
The landed price of LNG at this price was working out to around $5 per BTU as crude prices ruled above $20 per barrel. The problem arose as there were no takers for the gas at this price.
An upbeat Raha said that Rasgas was aware that India is a huge market for natural gas and Qatar has amongst the largest supplies in the world.