Source: RNCOS
Bharat Petroleum and
state-run Gas Authority of India Ltd. signed a deal with the National Iranian
Gas Export Co. in June 2005 to buy five million tons of Liquefied Natural Gas
(LNG) at $3.125 per Million British Thermal unit (mBtu) cap price. But now, the
price quotations have changed. Both the parties are now agreeing to pay $4.775
per mBtu.
The Iranian side has
been persisting that the June pact is off unless the gas price is revised. A
GAIL spokesperson said that though they have all the legal rights to sue them
for not respecting a signed pact, they don't want any complications in the
matter now.
As per the agreement,
Iran was supposed to charge 6.5% of
the Brent crude oil price at the loading time of each shipment and a fixed price
of $1.2 per mBtu at $31 per barrel Brent price. For the first two years, a 10%
discount was given, resulting to the price of $2.9 per mBtu from 2009 to the
year 2011.
According to a
research analyst at RNCOS, who has recently researched a report on "Market Research
on Asian LNG Market (2007)", India that
depends on imports for its more than 70% requirements wants to make sure it
receives sufficient supplies to maintain its economic growth, which is recording
a growth of over 8% a year. High prices of oil broaden trade deficit of
India and build inflation
pressure.
The market research
report on Asian LNG market also addresses the facts and issues critical to your
success, like:
- Atlantic
LNG market growing at faster pace as compare to Asia-pacific
market
- Role of
Middle East as LNG importer.
- Japan
& Korea remains the largest importer of LNG in 2005
- Insight
into market performance trends
- Growth
sectors and factors driving change
The research report
provides extensive research and rational analysis on Global LNG industry. It
also furnishes the information on the opportunities, challenges and market
leaders in the LNG market.
For more information
visit: http://www.rncos.com/Report/IM092.htm
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