GAIL gets a fresh trigger with Gorgon negotiation

The contract raises optimism on firm's high-priced deals with US players

In a positive development for Indian gas players, including GAIL, the 20-year deal for supply of liquefied natural gas (LNG) from Australia’s Gorgon project has been renegotiated. The Gorgon LNG contract with Exxon Mobil’s Australian subsidiary and Petronet was signed in 2009, but natural gas prices have come down significantly thereafter. The new price is lower by about $1.25 per British thermal unit (btu), over the old price. Petroleum Minister Dharmendra Pradhan said Indian consumers would receive LNG volumes at amicable prices soon, and this was done in way similar to the Qatar deal.
 
The renegotiated Gorgon contract is