In this list
LNG | Natural Gas

Indian oil minister hints at long-term LNG contract price review

Natural Gas | Energy | Electric Power | Renewables | Oil | Coal | Emissions | Energy Transition


Energy | Energy Transition | Natural Gas

Methane Performance Certificate Assessments

Energy Transition | LNG | Natural Gas

7th Asia LNG and Hydrogen Gas Markets Conference

Energy | Oil | Coal | Natural Gas | Petrochemicals | Refined Products | Gasoline | Crude Oil | Jet Fuel | Fuel Oil | Aromatics

OIL FUTURES: Brent tests $85/b threshold as demand recovery pressures supply outlooks

Energy | Energy Transition | Emissions | Oil | Crude Oil

Asia weighs more than just CO2 emissions in pursuit of low-carbon crude

Indian oil minister hints at long-term LNG contract price review

New Delhi — India is open to a review of LNG prices under its long-term contracts, oil minister Dharmendra Pradhan said Monday, reflecting market concerns about high prices for LNG imports at a time when spot prices have been on a prolonged downtrend.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The bulk of LNG contracts in Asia, the largest LNG importing region, are tied to oil-linked long term contracts but falling spot LNG prices have resulted in a pushback from buyers in countries like Japan and China, who are seeking to renegotiate long-term supply contracts or diversify procurement to spot markets.

The S&P Global Platts JKM for October cargoes was assessed at $4.408/MMBtu Monday, down 12.5 cents/MMBtu from Friday, during the Platts Market on Close assessment process. Comparatively, the oil-linked LNG price could be anywhere from $7-$10/MMBtu depending on the contract.

"We will look at reviewing long-term LNG contracts," the minister said at an industry event in New Delhi, adding that India would wait till an appropriate time to review its existing long-term LNG contracts as the country had renegotiated long-term deals in the past.

Pradhan didn't say how the reviews will be conducted and whether it will lead to renegotiations, but maintained that standing long-term LNG contracts would be honored at the first instance.

He said the Indian gas market has to be in sync with the prevailing trend in global markets.

New horizons: The forces shaping the future of the LNG market

As significant additions of elastic LNG supply and demand challenge traditional business models, and the trend towards LNG commoditization gathers pace, what lies ahead?

Download the report

Earlier this month, India's gas importer Petronet LNG had said it favored renegotiation for its long-term LNG supply deals in case spot prices remained dampened.

India currently has long-term LNG supply contracts with Qatar for 8 million mt/year, the US for 5.8 million mt/year, Russia for 2.5 million mt/year and Australia for 1.44 million mt/year.

India plans to invest $70 billion in its natural gas sector through promotion of city gas distribution networks, setting up LNG liquefaction facilities and natural gas exploration. It aims to raise the share of natural gas in the overall energy mix by 15% by 2030 from the current 6.23%.

-- Ratnajyoti Dutta,

-- Edited by Kshitiz Goliya,