In an effort to produce natural gas at cheap prices, India’s biggest LNG importer Petronet may soon sign a long-term LNG deal, benchmarked to daily or spot prices, which are often less than normal rates. However, the CEO and Managing Director of Petronet LNG, Prabhat Singh refused to give details of the supplier, PTI reported. Prabhat Singh added that the company was initially looking to buy 1 million tonnes of LNG under such a contract and aimed to further increase the capacity depending on the customer’s response. He further said that nearly 13 suppliers have showed interest in providing LNG to Petronet.
At present, Petronet buys around 10 Mtpa of LNG through contracts with ExxonMobil and Qatar Petroleum. However, these contracts are priced at an average of benchmark crude oil rates, which the company wants to get rid of. The PSU firm GAIL India has also contracted 5.8 million tonnes of LNG from the US-benchmark rates.