MUMBAI: Gail IndiaBSE -1.67 % is negotiating with gasrich Qatar to secure 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 LNGBSE 1.00 %, a senior company executive said.
The state firm wants a price of $12.5 per unit for LNG. In return, it has offered to waive its preemptive rights on the 5% stake in Petronet that Asian Development Bank is selling. This can help Qatar Petroleum buy that stake, said a senior Gail executive who did not want to be identified.
"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.
"What is Qatar putting on the table? LNG contract? But it's not like they are giving Petronet a sweet deal and lowering prices. So, why should the Indian side give them access to Petronet when we at Gail can strengthen our position by raising our equity in Petronet, which also makes complete commercial sense?" he added.