Bharat Petroleum and state-run Gas Authority of India Ltd. signed a deal with the National Iranian Gas Export Co. in June 2005 to buy five million tons of Liquefied Natural Gas (LNG) at $3.125 per Million British Thermal unit (mBtu) cap price. But now, the price quotations have changed. Both the parties are now agreeing to pay $4.775 per mBtu.
The Iranian side has been persisting that the June pact is off unless the gas price is revised. A GAIL spokesperson said that though they have all the legal rights to sue them for not respecting a signed pact, they don't want any complications in the matter now.
As per the agreement, Iran was supposed to charge 6.5% of the Brent crude oil price at the loading time of each shipment and a fixed price of $1.2 per mBtu at $31 per barrel Brent price. For the first two years, a 10% discount was given, resulting to the price of $2.9 per mBtu from 2009 to the year 2011.
According to a research analyst at RNCOS, who has recently researched a report on "Market Research on Asian LNG Market (2007)", India that depends on imports for its more than 70% requirements wants to make sure it receives sufficient supplies to maintain its economic growth, which is recording a growth of over 8% a year. High prices of oil broaden trade deficit of India and build inflation pressure.
The market research report on Asian LNG market also addresses the facts and issues critical to your success, like:
- Atlantic LNG market growing at faster pace as compare to Asia-pacific market
- Role of Middle East as LNG importer
- Japan & Korea remains the largest importer of LNG in 2005
- Insight into market performance trends
- Growth sectors and factors driving change
The research report provides extensive research and rational analysis on Global LNG industry. It also furnishes the information on the opportunities, challenges and market leaders in the LNG market.
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