You are here: Home » Reuters » News
Business Standard

India asks Qatar to invest in power plants as condition for LNG deals

Reuters  |  NEW DELHI 

By Neha Dasgupta

(Reuters) - on Tuesday said it would sign future long-term liquefied natural gas (LNG) purchase deals with if only Doha agrees to acquire stakes in the South Asian nation's power plants, minister Dharmendra Pradhan said.

is the latest major LNG buyer to seek concessions from Qatar, the world's biggest LNG exporter, in order to re-sign long-term supply contracts. Amid a global glut of LNG and a slump in prices, other buyers have sought more flexible contracts, including clauses that would allow them to resell gas they do not consume.

"Yesterday, we have given a firm proposal to If they want to have a long-term off-take assurance, there is a window. They can deal with our stranded power plants, from end to end they can give some solution," Pradhan told on Tuesday.

is suffering from natural gas shortages that have required power plants with capacity of as much as 25,000 megawatts to shut down or run as lower rates. Qatar's RasGas is India's biggest LNG supplier.

"It won't be quid pro quo but mutual interest...They can share the profit of those power plants," said Pradhan, adding wants to expand its ties with Doha beyond simply buyer and supplier.

wants to gradually move to a gas-based economy and has plans to raise its annual LNG import capacity to 50 million tonnes in the next few years from 21 million tonnes now.

is also open to granting stakes to in local and gas companies and LNG terminals, should the Gulf emirate make such a proposal, said Pradhan.

India's biggest gas importer annually buys 8.5 million tonnes under a long-term contract. It also buys additional volumes from under spot deals.

Prabhat Singh, chief executive of Petronet, said the Gulf nation needed to decide quickly on the Indian proposal. He said could be a stable outlet for Qatar's LNG.

(Reporting by Neha Dasgupta; Editing by Douglas Busvine and Christian Schmollinger)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)