India Pushes for Cut in Qatari LNG Price

Indian oil minister Dharmendra Pradhan has pushed for a reduction in Qatari LNG prices, reported news agency Press Trust of India Sunday.

Qatar is the biggest supplier of the chilled fuel to India, exporting 7.5 million tonnes a year of LNG on a long-term 25-year contract, indexed to the moving average of crude price.

Pradhan raised the issue of price cut during his meeting with Qatar's energy minister Mohammed Saleh Abdullah Al Sada on the sidelines of the 6th OPEC International Summit in Vienna on June 4, Press Trust added.

The Qatari minister, sources told the news agency, was sympathetic to the Indian cause, but wanted the issue to be negotiated between the companies concerned.

The price of LNG from that India imports from Qatar comes close to $13 per million British thermal unit compared with the $6-7 in the spot or current market.

Petronet LNG buys 7.5 million tonnes a year of LNG from RasGas of Qatar but has asked for a 10 per cent cut in import volumes this year.