‘Will examine GAIL demand for Australia deal renegotiation’
30 July 2013 11:15 PM GMT
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.
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