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PLL to sell LNG at 3.62 dollars per mn btu in Guj
New Delhi, Nov 07: India`s first LNG importer, Petronet LNG Ltd, will sell LNG imported from Qatar from April next at 3.62 dollars per million btu in Gujarat, almost the same price as that of private domestic natural gas producers.
New Delhi, Nov 07: India's first LNG importer, Petronet LNG Ltd, will sell LNG imported from Qatar from April next at 3.62 dollars per million btu in Gujarat, almost the same price as that of private domestic natural gas producers.
LNG, which will supplement domestic natural gas that
currently meets just 55 per cent of 115 million standard cubic
meters per day requirement, will be priced at USD 3.77
million btu (British Thermal Unit) for consumers elsewhere.
"Rasgas of Qatar will sell LNG at a fixed price equivalent to USD 20 a barrel for first five years. This translates into a fob price of USD 2.53 per million btu," PLL sources said. (one billion cubic meters is equal to 36 trillion btu). Thereafter, LNG would be sold to PLL on price linked to basket of crude oil with USD 16 per barrel as floor and 24 dollars per barrel ceiling. At the floor price, LNG would cost USD 2.02 per mmbtu (delivered price of 4.04 dollars per mmbtu) while at ceiling it would cost 3.03 dollars per mmbtu (delivered price of 5.14 dollars per mmbtu).
Rasgas has also agreed to match its price with any long- term supplier of LNG like Royal Dutch/Shell, they said.
PLL will import 2.5 million tonnes of LNG from Qatar in 2004 and scale up its operation to full capacity of 5 million tonnes from 2005. The new price of USD 3.6 per mmbtu is comparable to 3.45 dollars per mmbtu charged by GSPC in Gujarat. Cairn Energy PLC of UK sells gas produced from its offshore Gujarat field at 3.45 to 4.25 dollars per mmbtu. But it does not compare to subsidised natural gas produced by state-run ONGC that is sold at just over USD 2 per mmbtu.
Bureau Report
"Rasgas of Qatar will sell LNG at a fixed price equivalent to USD 20 a barrel for first five years. This translates into a fob price of USD 2.53 per million btu," PLL sources said. (one billion cubic meters is equal to 36 trillion btu). Thereafter, LNG would be sold to PLL on price linked to basket of crude oil with USD 16 per barrel as floor and 24 dollars per barrel ceiling. At the floor price, LNG would cost USD 2.02 per mmbtu (delivered price of 4.04 dollars per mmbtu) while at ceiling it would cost 3.03 dollars per mmbtu (delivered price of 5.14 dollars per mmbtu).
Rasgas has also agreed to match its price with any long- term supplier of LNG like Royal Dutch/Shell, they said.
PLL will import 2.5 million tonnes of LNG from Qatar in 2004 and scale up its operation to full capacity of 5 million tonnes from 2005. The new price of USD 3.6 per mmbtu is comparable to 3.45 dollars per mmbtu charged by GSPC in Gujarat. Cairn Energy PLC of UK sells gas produced from its offshore Gujarat field at 3.45 to 4.25 dollars per mmbtu. But it does not compare to subsidised natural gas produced by state-run ONGC that is sold at just over USD 2 per mmbtu.
Bureau Report