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ExxonMobil slashes 20-yr LNG price to India, move a bad omen for producers

Buyers have upper hand in a market where LNG spot prices are well below oil-linked contract prices

Reuters  |  Melbourne 

India has won a big price cut on a 20-year liquefied natural gas (LNG) deal with global giant ExxonMobil Corp in a rare contract renegotiation, a bad sign for global producers in a heavily oversupplied market. Long-term contracts are rarely revised in the LNG market, and for a big producer to cave in shows how supply from new plants in Australia and the United States over the past two years has transformed the market, analysts said. "This trend is overall a negative for sellers, as they are forced to provide more flexibility to buyers' needs to maintain their ...

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First Published: Mon, September 11 2017. 11:12 IST