India May Renegotiate Qatar LNG Price: Press

India may look to renegotiate the pricing of its long-term LNG import contract with Qatar amid falling spot rates, country’s petroleum and natural gas minister Dharmendra Pradhan said January 23 in New Delhi, Press Trust of India reported.

"Energy Minister of Qatar is coming for bilateral discussion (to India) at the end of the month. We will discuss all the aspects," Pradhan said when asked by reporters if the government is looking at renegotiating LNG contracts in view of the fall in the spot market.

India imports 8.5mn metric tons/year of LNG from Qatar under a long-term contract. The south Asian country also has contracted to import 5.8mn mt/yr of LNG from the US; 2.5mn mt/yr from Gazprom of Russia and a 1.44mn mt/yr from Australia.

While long-term LNG from Qatar comes for $8.5-9/mn Btu, the same gas is available in the spot market for less than half the price. India has in the past successfully renegotiated deals with Qatar, Australia, and Russia.

Pradhan said India is also in discussions with Qatar for importing more LNG, Press Trust of India reported.