Prices of liquefied natural gas supplied by Qatar’s RasGas to India’s Petronet LNG will now be revised on a monthly basis.
The long-term contract between the two companies states that Petronet have agreed to buy five million tonnes of LNG every year from RasGas, with the price linked to the Japan Custom Cleared Crude rate.
It did however contain a clause which said that prices could be revised from January 2009.
According to Reuters; Junior Oil minister Dinsha Patel said that the price of LNG will now vary on a month to month basis, depending on the crude price variation.
Under the new agreement it is expected supplies will be raised to 7.5 million tonnes next year.
Petronet also has a short-term agreement with RasGas to buy 1.5 million tonnes of LNG until September 2009.
Patel added, “The price for the remaining period of the contract, ie. January to September, would be re-negotiated.”