PNG MINISTER MR. PRADHAN DESERVES SHOT IN THE ARM FOR REDUCED LNG PRICE REGIME: PHD CHAMBER

PNG MINISTER MR. PRADHAN DESERVES SHOT IN THE ARM FOR REDUCED LNG PRICE REGIME: PHD CHAMBER

PNG MINISTER MR. PRADHAN DESERVES SHOT IN THE ARM FOR REDUCED LNG PRICE REGIME: PHD CHAMBER

 

No.PR-174
January 20, 2016
New Delhi
 

PNG MINISTER MR. PRADHAN DESERVES SHOT IN THE ARM FOR REDUCED LNG PRICE REGIME: PHD CHAMBER
 

President, PHD Chamber of Commerce and Industry, Dr. Mahesh Gupta has complimented the Ministry of Petroleum & Natural Gas under the stewardship of its Minister of State (IC), Mr. Dharmendra Pradhan for successfully renegotiating LNG prices with RasGas of Qatar and now making it available between $7-8 per mBtu from earlier level of US$ 12-13 per mBtu to Petronet LNG Ltd.
 

“With new LNG price regime in place, several gas fed industries in large sector including host of MSMEs in segments such as glass and ceramic will catapult for economic viability as the earlier price regime which was based upon long term pricing contract had virtually killed the sunrise sector of Indian economy with LNG price regime as high as that of US$ 12-13 per mBtu”, pointed out Dr. Gupta.
 

In an SOS sent to the Ministry of Petroleum & Natural Gas, the President, PHD Chamber said, “with the collapse of global oil and gas prices, the long term supplies agreement for procurement of LNG had become unviable with the contracted price at US$ 12-13 mmbtu vis-à-vis the spot LNG prices at US$ 7-8 per mmbtu”.
 

“The adept and adroit negotiating skills with which the Indian petroleum and natural gas authorities under the leadership of Mr. Pradhan handled the gas pricing issues with its supplier that is RasGas should be widely appreciated and adorned as industry, especially in its MSMEs segment that is dependent on LNG supplies to running its plants and machineries because the tumbled prices will enable such enterprises to run with margins that will keep them viable and profitable”, said Dr. Gupta adding that the tweaked price formula under the revised agreement will also be equally gainful for suppliers of LNG in the emerging and evolving world’s hydrocarbon scenario.
 

Ends.

Koteshwar Prasad Dobhal
Consultant (PR)