Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
LNG | Natural Gas

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

Commodities | Energy | Coronavirus

COVID 19: Coronavirus Outbreak

LNG | Natural Gas | NGL

Platts LNG Alert

Electric Power | Renewables | LNG | Infrastructure Utilities

Caribbean Energy Conference, 21st

Coal | Emissions | Natural Gas | Oil | Crude Oil

Cenovus Energy-Husky merger to create Canada's 3rd largest oil/gas producer

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, newsdesk@spglobal.com

-- Edited by Kshitiz Goliya, kshitiz.goliya@spglobal.com