Guwahati: Petronet LNG Ltd, India's main gas importer, wants Qatar Gas to decrease costs in order for it to renew a long-term liquefied contract that expires in 2028 and a long-term liquefied natural gas (LNG) import deal beyond 2028, according to its CEO, Akshay Kumar Singh.

In the short term, the company intends to commit 0.75 to 1 million tonnes of LNG to address the country's rising energy demand, particularly in the city gas sector. In a conference call with the media, Singh stated that Qatar exports 7.5 million tonnes of LNG to India each year at a price indexation of 12.67% of the current Brent price plus USD 0.52 per million British thermal units. (At a price of USD 100 per barrel of oil, the LNG price is USD 13.19 per mmBtu.)

Petronet also purchases an extra 1 million tonnes of LNG at a slightly higher price. The deal for 8.5 million tonnes per year expires in 2028. "They (Qatar Gas) have negotiated at a lower slope with our neighbouring nations, including Bangladesh, China, and Pakistan (than 12.67 percent). "We anticipate the long-term contract to be extended at such prices," he stated. "We're negotiating a better price with them."

Qatar's latest contracts with China, Bangladesh, and Pakistan are linked to a slope of around 10.2 percent of the Brent crude price delivered ex-ship. He said that Ferro Net might seek a bigger capacity than the present 8.5 million tonnes.