Agreement by Petronet LNG with RASGAS

Agreement by Petronet LNG with RASGAS

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that Petronet LNG Limited (PLL) has signed a revised contract with RasGas of Qatar. Petronet LNG Limited has a 7.5 MMTPA FOB LNG supply agreement with RasGas, Qatar on long term basis for 25 years. The supply under this agreement commenced in 2004. PLL has successfully negotiated the revised price formula for the said contract effective from 1st January, 2016 thereby aligning prices with the world gas market. Further, PLL has executed agreement for additional supply of 1.0 MMTPA of LNG from RasGas, Qatar for a period of about 12 years w.e.f. January 1, 2016 at the prevailing market prices. Earlier the prices during 2015 were in excess of USD 12/MMBtu. The current price applicable under the contract works out to less than USD 5.00MMBtu based on prevailing crude prices. This revision has led to making LNG cheaper for the end consumers.

RasGas and Petronet LNG Limited agreed to reschedule the LNG quantity not taken by Petronet LNG Limited during 2015 to a future period and RasGas has agreed to waive the take or pay liability under the contract for the year 2015.

YKB/RG/Rk