Indian Oil Corp. (IOC) has announced that it will not enter long-term fixed-price contracts with LNG suppliers, because it does not want to pay too much further down the line. However, the company has said that it would still be interested in long-term contracts for a given quantity of gas, but only with greater flexibility in the pricing.
The Director (Finance) of IOC, Arun Kumar Sharma, maintains that gas is becoming increasingly important, reportedly saying: “Gas is a big threat to our liquid fuel business.” IOC, therefore, has stated that it wishes for all of its filling stations to provide gas fuel, as well as petrol and diesel. In addition to this, the company is currently aiming to increase its presence in the gas industry by setting up an LNG import terminal near Chennai, India, with an accompanying 1167 km pipeline for the gas.
Edited from various sources by David Rowlands
Read the article online at: https://www.lngindustry.com/regasification/08102015/ioc-wants-greater-flexibility-in-lng-pricing-1433/