Qatar Keen to Meet India's LNG Demand

Negotiations between India and Qatar to supply an additional three to four million tonnes (mt) of liquefied natural gas (LNG) a year, are still going on, the Minister of Energy and Industry H E Mohammed bin Saleh Al Sada said.

Al Sada, speaking to The Peninsula said that Qatar was also keen to meet India’s growing LNG demand, and dialogue between the two parties was on.

Indian companies from both state owned and private sectors want more gas but decision has not been reached due to disagreement on price, The Peninsula said.

Asked if price was the main factor for the delay in additional supply of gas to India, the Energy Minister said: “There is no specific reason for the delay. Qatar shares a special relationship with India. Demand for LNG in India is increasing, and we are discussing with the parties to supply more gas.”

Qatar is asking for a price which is 15 to 16 percent of the Japanese Crude Cocktail (JCC), the average price of customs- cleared crude oil imports to Japan, while India is willing to pay 14.5 percent of JCC, The Peninsula reported.

As LNG demand in countries like India is on the rise, Qatar is shifting focus from Europe to Asia to tap this growing demand.