LPG agreement with Qatar helps reduce cost of importing natural gas

A revision in the liquefied natural gas (LNG) agreement with Qatar has helped bring down the cost of importing natural gas to less than $5 per million British thermal units (mmBtu) from $12 per mmBtu. India and Qatar agreed to slashing prices by more than half to match a slump in global energy rates. India also secured a waiver for a Rs 120 billion liability resulting from the short-lifting of gas. India, which received $15 billion worth of benefits during the first 11 years of the term contract with Qatar (beginning 2003) by way of enjoying low gas prices when world energy rates were rising, is currently paying less than $5 per mmBtu for the 7.5 million tonnes per annum (mtpa) of LNG it buys from RasGas of Qatar. This revision, applicable from January 1, has made LNG cheaper for end-consumers.