India’s Prime Minister Manmohan Singh has called upon major Asian buyers of LNG to unite in a bid to demand fairer pricing of LNG imports.
Dedicating Petronet’s LNG terminal at Kochi, Kerala, to the nation, Singh said: “Asia has been the driver of global LNG demand in recent times. It is therefore important that major buyers of LNG in Asia come together to demand a fairer pricing mechanism for gas being imported from outside Asia.”
India and Japan signed an agreement last September that sought to study the pricing of LNG in the Asia Pacific region. Both pricing imported gas, and the imports themselves, the Prime Minister said, represented crucial challenges that must be overcome.
Singh continued: “Our country has less than 1% of the world’s known natural gas reserves. Therefore for augmenting the supply of natural gas in our energy nix, we must necessarily import natural gas either by setting up LNG terminals or through trans-national pipelines.”
Singh’s requests are not falling on deaf ears. Petronet LNG has signed an agreement to import 14.4 lakh tpa of LNG to the Kochi terminal from Australia’s Gorgon LNG project for a period of 20 years, and the company is reported to have other supply contracts at an advanced stage of discussion for the long-term supply of LNG.
Edited from various sources by Ted Monroe
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