India Swaps Cheaper LNG for More Volume in 2nd Reworked Deal
- Deal similar to one renegotiated earlier with RasGas: Pradhan
- Petronet considering taking about 1 million tons/year more
This article is for subscribers only.
Petronet LNG Ltd. has reached an agreement to rework a liquefied natural gas supply agreement with Exxon Mobil Corp., the second such renegotiation by the Indian company for gas supplies after reaching a similar deal with Qatar, according to people with knowledge of the development.
Under the new terms, the cost of the gas from the Gorgon LNG project in Australia will be 13.9 percent of the price of Brent crude, said the people, who asked not to be identified because they aren’t authorized to speak to the media. That’s down from an earlier ratio of 14.5 percent of the cost of a slightly more-expensive basket of crudes that has traditionally been used to price LNG contracts, according to data from Bloomberg New Energy Finance.