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Qatar supplies 8.5 million tonnes of liquefied natural annually to India at a price linked Brent crude oil. Landed price comes to $9-10 per million British thermal units, while the same gas is available in the spot market at half the rate.
After talks with visiting Qatari Energy Minister Saad Sherida Al-Kaabi, Pradhan said, “LNG contracts should reflect current market reality”.
“All energy producers have to revisit this old practice (of pricing LNG linked to oil) and come to new methodology reflecting demand-supply,” he said.
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In 2017, it got ExxonMobil Corp to lower the price of Gorgon LNG and a year later convinced Gazprom to lower rates also.