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LNG: Gail-RasGas squamble over pricing
New Delhi, Nov 24: Worried about new gas discoveries replacing costlier LNG, Petronet LNG - a consortium of public sector oil companies for import of LNG - has asked RasGas of Qatar to bring down price of gas for Dahej.
However, Gail demand for lowering the LNG price linked to basket of crude oil with floor and ceiling price of $16 and $24 a barrel fixed in July, is being resisted by RasGas which feels PLL promoters have not met set milestones, sources close to negotiations said.
RasGas wants principal offtaker of Dahej gas to enter into firm Gas Sales and Purchase Agreement (GSPA) before reopening LPG pricing, they said adding Gail, on the other hand, is insisting on change before signing of agreements.
Turning down the Gail request, RasGas is believed to have communicated to Petroleum Secretary B K Chaturvedi, who is also the chairman of PLL, that "the pricing issue was settled and agreed in the original SPA (Sale Purchase Agreement signed in July), and contractually that price still prevails. On that basis, in accordance with the SPA and Commitment Letters, Gail and the other offtakers have made a commitment to implement the GSPAs."
Bureau Report