India will save as much as Rs 200 billion as it has renegotiated a long-term gas import deal with Qatar, Prime Minister Narendra Modi said on Monday. India buys 7.5 million tons a year of liquefied natural gas (LNG) per annum from Qatar. The price formula for this was fixed 13 years back and the rate went out of sync when global energy prices slumped last year. “We are dependent on other nations to meet our requirement of energy and petroleum (oil) supplies. And so long-term agreements have been entered into to get assured quantity at a pre-determined price,” Modi said in his Independence Day address to the nation from the Red Fort.
In the changed world economic scenario, the Qatar LNG price posed a huge burden on Indian economy, he said, adding that India used its foreign policy to reopen the price. “What was Qatar’s right and we were bound to pay, we managed to get Qatar to renegotiate…to make possible something which was impossible,” he said. India will save Rs 200 billion by renegotiating the LNG price lower, Modi said. “They (Qatar) were entitled to take Rs 200 billion (as per the long-term signed contract) but our diplomatic ties ensured that we renegotiate the terms.” RasGas of Qatar supplies LNG to India under a 25-year long term contract since 2004. Bobby Orr Womens JerseyShare This