Towards augmented gas availability-II: Time ripe for long-term import contracts

The current, soft global LNG prices are a prime opportunity for domestic gas suppliers to tie-up long term contracts for the import of gas. Global consultants, such as Wood Mackenzie, estimate that gas prices would remain in the range of USD 5-8 MMBTU till 2025. 

•  At these prices, it is feasible to procure about 23 MMTPA of LNG by 2015, equivalent to 50 MMSCMD of supplies. This would be enough to fuel 12,000 MW of new capacity.
• Petronet LNG has already tied up 7.5 million tonnes of LNG imports with Qatar for 25 years. In addition, Petronet LNG Limited has, recently, signed a 1.5 MMTPA LNG supply contract with Exxon Mobil for supplies from the Gorgon LNG project in Australia.
• Discussions are also on with Qatar for supply of 4 MMTPA of LNG; however, pricing is an issue in this case.