Business

Qatar refuses to lower gas price

Dharmendra Pradhan

Dharmendra Pradhan  

India on Monday pressed its largest LNG supplier Qatar to lower the price of gas under the existing long-term supply contracts, a request that Doha turned down saying sanctity of contracts is important for credibility of both sides.

India imports 8.5 mtpa of LNG from Qatar under two long-term contracts with a rate linked to crude oil prices. Landed price of liquefied natural gas (LNG) comes to $9-10 per million British thermal unit, while the same gas is available in the spot or current market at half the rate. The long-term contract with Qatar is the most expensive.

Oil Minister Dharmendra Pradhan met Qatar Energy Minister Saad Sherida al-Kaabi to press for the “need for realignment of existing long-term LNG contracts with the market to suit the affordability of end consumers.”

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Printable version | Feb 23, 2020 8:30:39 PM | https://www.thehindu.com/business/qatar-refuses-to-lower-gas-price/article30668946.ece

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