India to bargain for undelivered LNG cargo with Qatar

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India will bargain for supply of undelivered gas quantities of past years when it negotiates renewal of its multi-billion dollar LNG import deal with Qatar, an official said. Petronet LNG Ltd’s 7.5 million tonnes a year liquefied natural gas (LNG) import deal with Qatargas is ending in 2028. Renewal, if any, has to be confirmed 5 years ahead of that.Talks for renewal will start next year and will be conditioned on Qatargas delivering in 2022 the 50 cargoes or shiploads of LNG that weren’t taken in 2015, Petronet Director-Finance V K Mishra said.

India in 2015 had not taken delivery of the cargoes as it renegotiated the pricing of the long-term supply contract after prices hit double-digit. Qatar had then agreed to revise the pricing formula subject to India buying an additional 1 million tonnes per annum of LNG.   As regards the cargoes that were not taken, it was decided that India can seethe cargoes anytime during the remainder of the contract that endsin 2028.

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