Follow us on
Welcome Guest! You are here: Home » Business & Economy
India renegotiates gas price with Qatar, saves Rs.16,000 crore
Thursday December 31, 2015 10:47 PM, IANS

New Delhi: In a major renegotiation of a long term gas purchase agreement with Qatar sealed on Thursday, India has effected foreign exchange saving on import of upto Rs.16,000 crore ($2.5 billion) , Petroleum Minister Dharmendra Pradhan said here on Thursday.

"The year has been memorable for India's oil and gas sector also for the signing of this modified agreement. Going by the old long-term gas contract price, we have succeeded in renegotiating a benefit of Rs.16,000 crore in this calender year," Pradhan said in his address here at the signing of the modification to the gas sale-purchase agreement between India's Petronet LNG and Ras Gas of Qatar.

"From the $12-13 per unit that we need to pay now under the long-term contract, we have brought the price bandwith down to $6-7. The deal will help Indian LNG consumers save Rs.4,000 crore annually," the minister said.

"We are grateful to Qatar for being a good partner," he added.

RasGas and Petronet signed a revised LNG sale-purchase agreement on Thursday, whereby Qatar's state-owned natural gas producer will sell the fuel at nearly half the original cost. The new contract is effective from January 1, 2016 and ends in 2028.

In addition, RasGas has also agreed to waive off the "take or pay" penalty of nearly Rs.12,000 crore on Petronet for a lower offtake during 2015.

In return for the renegotiation, Qatar's RasGas will be selling an additional one million tonnes of LNG annually to Petronet.

"The economy of the world is changing and in this regard India did not want to lose out in the changed dynamics. We want to move towards a gas-based economy. For this a restructuring of the long-term contract with Qatar's RasGas was required," Pradhan said.

He said the importance of renegotiating the contract was discussed at the highest level when the Emir of Qatar Sheikh Tamim bin Hamad Al Thani met Prime Minister Narendra Modi in April 2015 in India.

"I went to Qatar in November to put our points there. Qatar has been a good business friend, but we're now moving from the relationship of a buyer and a seller to long term partners," he said.



 

Share this page
More Headlines
117 Muslim students from across India felicitated, AFMI Bhopal convention concludes
Leave, working from home: Delhites go the extra mile to avoid odd-even restrictions
AIBEA perceives merger of associates with SBI, go ahead with January 8 strike
Similarity in Islam, Catholic beliefs making US Latinos to convert to Islam
Facebook's Free Basics services shut down in Egypt
Congress issues notice to Amit Jogi, seeks Raman Singh's resignation
2015: The deadliest year on record for American Muslims
Congress bags majority of seats in Karnataka council polls
Zakir Naik banned in Karnataka: NRI in police net for insulting top cop
Jammu and Kashmir CM Mufti Muhammad Sayeed shifted to ICU
ATUFS for technology upgradation of textile industry gets cabinet nod
Vardhin Manoj is first Indian in Harvard University's soccer team
TN Muslim group issues 'Fatwa' against Ramdev's Patanjali for containing cow urine
IIT, IISc academicians slam Facebook's Free Basics
Google as your doctor? Not without risk
E-tailers log out smart buyers from costly retailers
DDCA official sought sex for selecting players: Kejriwal
Minor's gang rape in train: Soldier sent to custody, army assures cooperation
Nine BJP members held, probe ordered into Assam Congress office attack
PMO refuses to accept Sanjiv Chaturvedi's award money
Microsoft CEO Satya Nadella promises help to promote startups in Hyderabad
'Congress Darshan' content editor sacked, party distances from journal
Offered liquor and gang raped by army men in running train: Girl says in complaint
 Post Comments
Note: By posting your comments here you agree to the terms and conditions of www.ummid.com