India to negotiate for undelivered gas cargoes
India will bargain for supply of undelivered gas quantities of past years when it negotiates renewal of its multibillion-dollar LNG import deal with Qatar, Petronet Director-Finance V K Mishra said.
image for illustrative purpose
New Delhi: India will bargain for supply of undelivered gas quantities of past years when it negotiates renewal of its multibillion-dollar LNG import deal with Qatar, Petronet Director-Finance V K Mishra said.
Petronet LNG Ltd.'s 7.5 million tons a year liquefied natural gas (LNG) import deal with Qatar gas is ending in 2028. Renewal, if any, has to be confirmed 5 years ahead of that. Talks for renewal will start next year and will be conditioned on Qatar gas delivering in 2022 the 50 cargoes or shiploads of LNG that weren't taken in 2015,
India in 2015 had not taken delivery of the cargoes as it renegotiated the pricing of the long-term supply contract after prices hit double-digit. Qatar had then agreed to revise the pricing formula subject to India buying an additional 1 million tons per annum of LNG. As regards the cargoes that were not taken, it was decided that India can see the cargoes anytime during the remainder of the contract that ends in 2028. In case, Qatar is unable to meet the request, the deferred cargoes can be delivered in 2029.
