India Renegotiates US LNG Contracts

India has held a number of discussions with Cheniere Energy and Dominion Cove Point for renegotiation of the LNG contracts, Indian oil minister said in the Lok Sabha, the lower house of the parliament December 18.

“Gail has held number of discussions with Cheniere Energy (Sabine Terminal) and Dominion Cove Point LNG LP (DCP Terminal), for re-negotiation of the contracts. The discussions have been held at the working level as well as management level. The most recent discussions with both the parties were held during the month of November 2017,” Pradhan said.

Gail has a contract with Cheniere to import 3.5mn metric tons/yr of LNG while with Dominion it has a deal to import 2.3mn mt/yr of LNG.

India has successfully renegotiated its LNG contracts with Qatar and Australia in recent past.

Petronet LNG in September renegotiated it's original 20-year contract inked with the Chevron-led Gorgon project in Australia. “Petronet has been under active discussions with the LNG supplier regarding certain commercial aspects under its agreement and has reached an understanding related to the subject contract with ExxonMobil,” Pradhan said.

Under its Gorgon deal, Petronet will take about another million metric ton of LNG at 12.5% of the Brent oil price; the original supplies will come for 13.9% of Brent, down from 14.5% earlier, and the transportation cost would shift on to Exxon from Petronet earlier.