Petronet India's LNG vessel

Petronet may avoid $1-bln LNG penalty

NEW DELHI, November 23, 2015 – Qatar’s RasGas is poised to waive a $1-billion penalty levied against India’s Petronet for its breach of an LNG take-or-pay agreement, reports said on Monday.

Petronet has bought only 68 percent of its contractual 7.5 million tonnes of the commodity from RasGas in 2015.


The LNG purchases take place under a 25-year supply deal that took effect in 2004. RasGas has agreed to review the agreement’s pricing formula in light of the global downturn in energy prices.

Petronet is India’s top importer of LNG. In October, the company revealed that it faced $1 billion in losses from its take-or-pay contract with RasGas as Indian buyers balked at a price reportedly double the current LNG standard.

Following media reports of the waiver, Petronet said the two companies had not yet executed a binding agreement.

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