The Competition Commission's observations can have wide ranging implications for buyers of RLNG that had been contracted through Petronet LNG under a crude oil linked long term agreement with RasGas of Qatar.
8PLL in turn has similar Take or Pay obligation with RasGas and these accounts have to be settled by the end of the year.
8With customers unwilling to take the expensive gas because the floor price for crude at which the RLNG was contracted by PLL is far too high and this makes the gas more expensive than spot LNG at the moment.
8If PLL has to pay penalties for not offtaking RLNG cargoes from RasGas, PLL in turn may have to ask offtakers like GAIL to pay up. The gas major will have to raise the money from customers of gas who have rejected RLNG supplies despite long term GSAs.
8"The prices of RLNG imported in the country by PLL are governed by the fuel oil linkages as part of the contracts signed between individual companies like RasGas and PLL. The end user price of RLNG is not subsidized by the Government of India and is a complex mix of various components such as purchase price, exchange rate, regasification charges, transmission charges, taxes, contractual risks, competing fuel pricing etc. Accordingly, the relevant product market in the instant case does not need categorization on the basis of pricing mechanism," the Commission observed, thereby ruling out any anti-competitive pricing behaviour.
For more details visit indianpetroplus.com
8PLL in turn has similar Take or Pay obligation with RasGas and these accounts have to be settled by the end of the year.
8With customers unwilling to take the expensive gas because the floor price for crude at which the RLNG was contracted by PLL is far too high and this makes the gas more expensive than spot LNG at the moment.
8If PLL has to pay penalties for not offtaking RLNG cargoes from RasGas, PLL in turn may have to ask offtakers like GAIL to pay up. The gas major will have to raise the money from customers of gas who have rejected RLNG supplies despite long term GSAs.
8"The prices of RLNG imported in the country by PLL are governed by the fuel oil linkages as part of the contracts signed between individual companies like RasGas and PLL. The end user price of RLNG is not subsidized by the Government of India and is a complex mix of various components such as purchase price, exchange rate, regasification charges, transmission charges, taxes, contractual risks, competing fuel pricing etc. Accordingly, the relevant product market in the instant case does not need categorization on the basis of pricing mechanism," the Commission observed, thereby ruling out any anti-competitive pricing behaviour.
For more details visit indianpetroplus.com
No comments:
Post a Comment