New Delhi (Sputnik): India's renegotiated gas import deal with Russia's Gazprom is likely to save around $1.4 billion over the contract period ending in 2040, the minister of petroleum and natural gas, Dharmendra Pradhan, has claimed. In January this year, India's state-owned gas utility GAIL India had renegotiated the price agreed in 2012 with the Russian firm.
READ MORE: Russia Agrees to Lower LNG Prices for 20-Year Contract With India
"GAIL India Limited and Gazprom successfully re-negotiated the long-term LNG Sale and Purchase Agreement reflecting the current global gas market dynamics. The renegotiated price, compared to the earlier contract price, will result in savings of approximately $1.2 billion or INR 8500 crore (crude oil at US$ 50 per barrel) or $1.3 billion or INR 9000 crore (crude oil at US$ 60 per barrel) or $1.4 billion or INR 9500 crore (crude oil at US$ 70 per barrel) for the years 2018 to 2040," Pradhan informed the Parliament on Wednesday.
Earlier, the Narendra Modi-led government had successfully renegotiated the price of LNG with Qatar's RasGas and America's Exxon Mobil Corp. GAIL has also renegotiated a contract to buy about 5 million metric ton per annum of LNG from US firm Sabine Pass and Cove Point LNG Terminals that would save around $600 million.
READ MORE: Russian LNG is Likely to See Opportunity in China Amid Gas Shortage — Analysts
As per the official record of the Indian government, the country has four operational LNG import terminals at Dahej, Hazira, Dabhol and Kochi, with a total LNG import capacity of 27.5 million metric tons.
