Gail India in Talks With Qatar to Buy LNG

Gail India is in talks with Qatar to buy 3 million tonnes of LNG at a price lower than the offered $14 per unit, and is offering to help Qatar Petroleum acquire 5% equity in Petronet LNG, a report in financial daily the Economic Times said.

As per the news report Gail wants a price of $12.5 per unit and in return it has offered to waive its pre-emptive rights on the 5% stake in Petronet that Asian Development Bank is selling.

This can help Qatar Petroleum buy that stake, a senior Gail executive who did not want to be identified told the newspaper.

"These are all negotiation tactics. In case Qatar agrees to our terms, we could consider waiving our preemptive rights on ADB's stake. We see them softening their stance as they have realised that we have negotiated lower LNG prices at Sabine pass, US and Gorgon, Australia," said the executive.