Import of Natural Gas
New Delhi, July 23: Union Minister of Petroleum & Natural Gas, Dharmendra Pradhan has said that in order to promote gas usage and to increase use of cleaner fuel and making Liquefied Natural Gas (LNG) more affordable to end users in the industries, Government vide notification No. 6/2017-Customs, dated 2nd February, 2017 has reduced the basic customs duty on LNG from 5 per cent to 2.5 percent.
In a written reply in Lok Sabha today, he said that LNG Cargo of Russian natural gas under the long term contract between GAIL India Limited and Gazprom Marketing & Trading Singapore (GMTS) of Russia was received on 4th June, 2018. The gas price is negotiated between parties depending on many factors like project location, duration of contract, pricing formula, etc. GAIL India Limited and Gazprom successfully re-negotiated the long-term LNG Sale and Purchase Agreement reflecting the current global gas market dynamics. The renegotiated price, compared to earlier contract price, will result in saving of approximately ₹ 8500 crore (crude oil at US $50 per barrel) or ₹ 9000 Crore (crude oil at US$60 per barrel) or ₹ 9500 crore (crude oil at US$70 per barrel) for the years 2018 to 2040. Import Price per unit of LNG under GMTS contract is very competitive and currently cheaper than other long-term LNG supplies being received by GAIL at any delivery port in India.
LNG is imported under open general license on the terms and conditions mutually agreed upon between the buyers and sellers. India has four operational LNG import terminals at Dahej, Hazira, Dabhol and Kochi with a total LNG import capacity of 27.5 MMT. After regasification, the imported LNG is distributed to industries and domestic consumers through existing trunk pipeline networks passing through various states.
