State gas utility GAIL India Ltd’s demand for renegotiation of India’s most expensive LNG import deal with Australia’s Gorgon project will be examined internally before taking action on the request, A K Balyan said on Tuesday.
Petronet LNG Ltd, in which GAIL and three other state-run firms hold 12.5 per cent stake each, had in August 2009 signed a 20-year deal to buy 1.44 million tonnes per annum of liquefied natural gas at a price equivalent to 14.5 per cent of ruling oil rates.
At $100 per barrel oil price, the landed cost of Australian gas will be close to $18 at Kochi port, a rate which GAIL says is not acceptable to principal users like power plants and fertiliser units.
Petronet LNG Ltd, in which GAIL and three other state-run firms hold 12.5 per cent stake each, had in August 2009 signed a 20-year deal to buy 1.44 million tonnes per annum of liquefied natural gas at a price equivalent to 14.5 per cent of ruling oil rates.
At $100 per barrel oil price, the landed cost of Australian gas will be close to $18 at Kochi port, a rate which GAIL says is not acceptable to principal users like power plants and fertiliser units.