RasGas to supply LNG to Petronet
Qatar-based RasGas has agreed to supply 5 mm tons of LNG from 2004 to Petronet LNG, a consortium of state-run oil
companies that import natural gas, on a price linked to a basket of crude oil with a floor and ceiling price of $ 16
and $ 24 per barrel, sources confirmed.
Based on this pricing structure, consumers can expect to pay at a rate of $ 3-3.6 per mm Btu.
This price may drop to a ceiling price of $ 21-22 a barrel if Petronet LNG can sign a long-term Gas Sales and
Purchase Agreement with RasGas.
Three of Petronet LNG's investors, namely the Gas Authority of India, the Indian Oil Corporation, and Bharat
Petroleum, who each own a 12.5 % stake, have yet to sign the take-or-pay agreements for the off-take of 20 mm cmpd of
gas.
