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BETU(GOA): India has renewed for 20 years a 1999 contract for transport gas from Qatar at a decrease fee and extra beneficial phrases that can result in an estimated savings of $6 billion over the prolonged interval, assuming the present Brent crude value of $80 per barrel.
India’s largest gas importer Petronet-LNG and QatarEnergy on Tuesday signed on the sidelines of India Energy Week right here the settlement extending the contract, which expires in 2028, for importing 7.5 million tonne of LNG (liquefied pure gas) yearly for an estimated $78 billion.
India meets 40% of its gas wants via imports. The contract with QatarEnergy accounts for 35% of whole gas imports. Qatar started supplying LNG from 2003-2004 beneath the prevailing deal that’s priced at a ‘slope’ (per cent) of 12.67% of the present Brent crude futures charges and a mounted cost of 52 cents per unit (million British thermal items or mmBtu) of gas.
Sources stated the mounted cost has been scrapped beneath the revised contract, whereas the slope largely stays the identical as earlier than. The revised phrases will even save transport value as QatarEnergy will bear the price of delivering gas on the port designated by Petronet beneath DES (delivered foundation) towards FOB (free on board) association, the place purchaser arranges transport, within the present contract. Altogether, the saving will come to $0.eight per unit of gas.
The beneficial phrases within the renewed contract signifies India’s rising clout because the pivot of worldwide power demand development. Indian negotiators leveraged this reality to drive a exhausting discount throughout lengthy-drawn negotiations.
The talks coincided with a dip in bilateral ties after a Qatari court docket handed demise sentence to eight former Indian Navy officers on expenses of spying for Israel, which was seen as Doha’s try and affect the negotiations.
But New Delhi performed hardball because the negotiations got here at a time when Qatar, the world’s largest LNG exporter, was looking for patrons amid rising US provides to Europe limiting advertising choices for its expanded liquefaction capability. Qatar’s liquefaction is ready to rise from 77 million tonne every year to 126 million tonne by 2027.
India’s largest gas importer Petronet-LNG and QatarEnergy on Tuesday signed on the sidelines of India Energy Week right here the settlement extending the contract, which expires in 2028, for importing 7.5 million tonne of LNG (liquefied pure gas) yearly for an estimated $78 billion.
India meets 40% of its gas wants via imports. The contract with QatarEnergy accounts for 35% of whole gas imports. Qatar started supplying LNG from 2003-2004 beneath the prevailing deal that’s priced at a ‘slope’ (per cent) of 12.67% of the present Brent crude futures charges and a mounted cost of 52 cents per unit (million British thermal items or mmBtu) of gas.
Sources stated the mounted cost has been scrapped beneath the revised contract, whereas the slope largely stays the identical as earlier than. The revised phrases will even save transport value as QatarEnergy will bear the price of delivering gas on the port designated by Petronet beneath DES (delivered foundation) towards FOB (free on board) association, the place purchaser arranges transport, within the present contract. Altogether, the saving will come to $0.eight per unit of gas.
The beneficial phrases within the renewed contract signifies India’s rising clout because the pivot of worldwide power demand development. Indian negotiators leveraged this reality to drive a exhausting discount throughout lengthy-drawn negotiations.
The talks coincided with a dip in bilateral ties after a Qatari court docket handed demise sentence to eight former Indian Navy officers on expenses of spying for Israel, which was seen as Doha’s try and affect the negotiations.
But New Delhi performed hardball because the negotiations got here at a time when Qatar, the world’s largest LNG exporter, was looking for patrons amid rising US provides to Europe limiting advertising choices for its expanded liquefaction capability. Qatar’s liquefaction is ready to rise from 77 million tonne every year to 126 million tonne by 2027.
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