Drop in domestic demand for LNG due to a fall in spot prices urged India to enter talks with Qatar’s RasGas in order to import at least 10 less liquefied natural gas cargoes under the long-term deal.
Reuters reports a source saying that India is looking to use the permissible reduction of 10% under the long-term imports deal.
But as customers are not lifting volumes from India’s LNG terminals, the source added that India will look for more than 10% reduction.
Due to the weaker demand, India’s LNG terminals have been running at lower capacity.
Under the current deal, India imports LNG at a price of $13 per million British thermal units, Petronet LNG’s head of finance R.K. Garg said, noting that current spot prices are around $6-$7 per mmBtu.
LNG World News Staff; Image: Petronet LNG