State-run gas company GAIL (India) Ltd is reportedly working towards renegotiating two more long-term liquefied natural gas (LNG) deals.
India has been pushing real hard in seeking cheaper deals with Petronet LNG renegotiating a deal with Qatar’s RaGas in 2015.
Gail, that holds a stake in Petronet LNG, has recently agreed with ExxonMobil to lower prices for the fuel it gets from the Gorgon plant in Australia in exchange for agreeing to purchase higher volumes.
In addition, Gail has also signed time-swap deals with international players to sell some of its previously contracted U.S. LNG supplies as it is trying to reduce costs for price-sensitive Indian customers.
“We have successfully renegotiated, along with Petronet LNG two long-term contracts. We are now working on third and fourth contract,” GAIL’s Chairman B.C. Tripathi was quoted by the Press Trust of India as saying on Wednesday.
“This is how the market structure has changed. We are moving from a supply-constraint market to a supply-surplus market,” he said.
Even though Tripathi did not name the two other contracts for which GAIL is seeking price renegotiation, the report suggests he was referring to LNG contracted from the US and Russia.
The Indian company has a contract with Cheniere to buy 3.5 million mt per annum of LNG for 20 years from Sabine Pass and has also booked capacity for another 2.3 million mt at Dominion Energy’s Cove Point liquefaction plant.
GAIL has also a 20-year contract with Russia’s Gazprom to buy 2.5 million tonnes a year of LNG.
LNG World News Staff