Wednesday, 6 January 2016

India's LNG deal with Qatar: Deal sends global market into a tizzy

Prime Minister Narendra Modi and petroleum minister Dharmendra Pradhan along with PLL MD Prabhat Singh have pulled off a coup by coaxing Qatar the cut the price of 7.5 MMTPA of long term LNG contract after protracted negotiations.
8The deal will see the price of LNG drop by $5/mmbtu from $12.5/mmbtu in December, 2015. The price will be around $7.5/mmbtu or less in India. This was done by changing the price formula from five-year average of crude oil prices to a three-month average, and the waiving of the penalty for LNG not taken which could have been as much as $1 billion.
8The deal has send the global LNG market into a tizzy.
8Prabhat Singh is an experienced hand in this game and he seems to have been fully backed by Pradhan to push the Qataris into a corner and force them to come up with a concession.
8There was seamless coordination between Singh, Pradhan and Modi, all of whom worked in concert to land India a good deal.
 8Negotiations were done skillfully by the Indian side - Singh had 22 meetings to arrive at..http://goo.gl/WNluOb

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