Petronet LNG’s Contract Re-Negotiation With Exxonmobil May Bring Down Your Fuel Bill

Petronet LNG’s Contract Re-Negotiation With Exxonmobil May Bring Down Your Fuel Bill

After Petronet LNG successfully re-negotiated a deal with ExxonMobil, in what could potentially save up to Rs 10,000 crores, Jal Irani of Edelweiss Financial Services believes that the end consumer is the ultimate beneficiary. In conversation with CNBC TV18, the oil and gas expert said, “Petronet LNG is essentially just a pass-through.” Petronet LNG will pass on the benefits of the deal to players such as Bharat Petroleum, GAIL and Indian Oil Corporation Ltd, which buy liquefied natural gas from the company as raw material.  These players in-turn will reduce the prices charged to the end consumer, thereby having a direct impact on the household fuel bill.  While GAIL is the largest natural gas distribution company in India, Bharat Petroleum has been conferred with Maharatna status by the government. The customers stand to gain, due to the sheer size of these oil and gas behemoths. Read More…

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