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ExxonMobil slashes LNG price to India in bad omen for producers

Reuters  |  MELBOURNE/NEW DELHI 

By Sonali Paul and Nidhi VermaMELBOURNE/NEW DELHI (Reuters) - India has won a 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 producers in a heavily oversupplied global market.In a trade-off for ExxonMobil, Petronet LNG will increase its volumes from the Gorgon LNG project in Australia by an extra 1 million tonnes a year to about 2.5 million tonnes a year, but at cheaper rates than initially agreed in 2009.Long-term contracts are rarely revised in the LNG market, and for a big producer to cave in shows ...

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First Published: Mon, September 11 2017. 13:00 IST
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