Another sweetheart gas deal with Qatar unlikely

India is looking at Qatar for a ‘sweetheart’ gas deal but Doha appears in no mood to sell liquefied natural gas (LNG) at anything less than $9-11 (Rs 421 to Rs 515) per mmBtu — more than double the domestic gas price.

India is looking at Qatar for a ‘sweetheart’ gas deal but Doha appears in no mood to sell liquefied natural gas (LNG) at anything less than $9-11 (Rs 421 to Rs 515) per mmBtu — more than double the domestic gas price.

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Petroleum Minister Murli Deora had earlier this month took along chief executives of public sector oil companies to Doha hoping that Qatar’s Energy Minister Abdullah al-Attiyah would replicate the ‘sweetheart’ deal of 2003.

Qatar had then agreed to sell 5 million tonnes LNG a year to India at $2.53 per mmBtu (Rs 118.40), and because of the low price it was referred world over as the ‘sweetheart’ deal.

But this time, Qatar wants 13.5-15.5 per cent of ruling crude price, and the ex-terminal cost is not likely to come less than $12 per mmBtu (Rs 561.60), sources said.