Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 3.9
Article rating: 5.0
Article rating: 4.5
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.3
Article rating: 1.0
Article rating: No rating
RSS

News

India urges pricing flexibility, review clause in LNG contracts

Author: IANS/Wednesday, October 18, 2017/Categories: Oil & Gas

India urges pricing flexibility, review clause in LNG contracts

Tokyo, Oct 18 - Given the transformation in the global LNG market into a situation of oversupply, India on October 18 called for flexible terms for gas purchases, including the provision of a pricing review, "take or pay" terms and abolition of destination restriction clause in contracts.

Indian Petroleum Minister Dharmendra Pradhan urged global LNG markets to join hands to design flexible terms at the LNG Producer-Consumer Conference here being held over October 17-18, according to a statement from the Indian Petroleum Ministry.

"Pradhan urged the global LNG markets, in which producers and consumers of LNG have equal stakes, to join hands to design flexible terms such as pricing review, flexible take or pay, abolition of destination restriction clause in the LNG contracts," the statement said.

"These reforms are essential for developing a transparent, efficient, truly global and balanced LNG market," the Minister said in his keynote address at the conference. 

Last month, India renegotiated the price of liquefied natural gas (LNG) it imports from the Gorgon project in Australia that will result in savings of more than Rs 10,000 crore.

The Gorgon project operators' consortium led by American energy majors Chevron and Exxon Mobil have agreed to charge 13.9 per cent of the prevailing UK Brent oil price at the port of delivery, rather than 14.5 per cent at the port of loading as was agreed earlier.

Last year, India favourably re-negotiated its LNG agreement with Qatar to bring down the cost of importing natural gas to less than $5 per unit from $12.

According to the statement, Pradhan also met with Japanese Minister of Economy, Trade, and Industry Hiroshige Seko and discussed increasing cooperation in the hydrocarbon sector between the two nations.

The ministers signed a memorandum of cooperation (MoC) on jointly developing a liquid, flexible and global LNG Market.

"The MoC provides a framework to cooperate in facilitating flexibility in LNG contracts, abolition of the destination restriction clause and also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply," it said.

"They also explored joint cooperation in the areas of LNG sourcing, swapping and optimization of LNG sources and commercial exploitation of methane hydrates," the statement added.

Both India and Japan are among the top four LNG importers and have agreed to swap supply contracts in order to save on transporting the fuel from overseas. 

"The MoC will promote the bilateral relationship between India and Japan in the energy sector and will contribute to the diversification of gas supplies for India," the ministry said prior to Pradhan's departure for the island nation. 

According to the statement, Pradhan invited Seko to attend the 16th International Energy Forum Ministerial meeting to be held in New Delhi during April next year.

 

Print Rate this article:
No rating

Number of views (194)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free