India plans to cancel 10-year liquefied natural gas import tender

Petronet LNG, India's largest liquefied natural gas importer, plans to cancel import tender on 1 million tones a year, which should have been contracted for 10 years. Yet, due to the progress on energy commodity market, the plan is being postponed.

India plans to cancel 10-year liquefied natural gas import tender

According to Prime Minister Narendra Modi, India aims to negotiate better prices on LNG import given the current market situation. Long-term contracts currently make no sense and neither makes sense to lose precious foreign exchange, Reuters said referring to an unknown resource. 

Nevertheless, Petronet CEO said last month that the company is close to reach a final agreement, when import gas price approaches spot prices. Yet, spot prices have dropped perceptibly, and therefore better conditions are currently in discussion. In May, liquefied natural gas has dropped to record-low values on Asian market

India aims to agree on better prices for the commodity so that the percentage of natural gas on energy mix reaches 15% till 2030 from current 6.2%. The ambition is to reduce air pollutant emissions.

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