Qatar has agreed to discuss India’s demand to renegotiate the long-term LNG contract, reversing the stand it took just four months ago, as crumbling spot prices and collapsing demand during the pandemic has put global suppliers under tremendous pressure.
“Qatar was earlier cold to the idea but has now agreed to discuss. A meeting is being arranged and should happen over the next week or two,” said a person familiar with the matter.
Executives at Petronet LNG, which imports Qatari gas are likely to meet via videoconference with Qatar gas executives soon to discuss how prices can be cut for the 8.5 million tonne a year of supply deal that expires in 2028.
Petronet LNG is also planning to approach ExxonMobil to cut prices on its 20-year-contract for 2.5 million tonnes a year of LNG from its Australian project, said the person.