India To Save Rs 4,000 Crore Post Exxon LNG Price Revision

India To Save Rs 4,000 Crore Post Exxon LNG Price Revision

India will save about Rs 4,000 crore after it got US energy major Exxon Mobil Corp to lower the price of liquefied natural gas(LNG) after the new rates kick-in from January next year.

Petronet LNG Ltd, India’s biggest importer of liquefied natural gas, in August 2009 signed a 20-year deal to buy 1.44 million tonnes of LNG from Exxon’s share in the Gorgon project in Australia. The deliveries under the contract started early this year.

“The revised price is still to be documented. We are trying to get the revised price implemented from January 1,” Petronet LNG Ltd MD and CEO Prabhat Singh told reporters here.

Exxon Mobil Corp has agreed to charge 13.9 per cent of the prevailing Brent oil price at the port of delivery rather than previously decided 14.5 per cent of the oil rate at the port of loading. The delivered price was considered too high and so price was renegotiated. Read More…

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