Petronet to import cheapest LNG at $7.60 per mBtu

Petronet LNG Ltd, India's largest LNG importer, has contracted a 62,000 tonne cargo from Egypt at an ex-ship price of $7.60 per million British thermal unit (mBtu), the cheapest cargo every contracted by an Indian firm from spot market, industry sources said.

The cargo from Idku terminal of Egyptian LNG (owned by BG Group of UK and Petronas of Malaysia) is expected to reach Petronet's Dahej terminal in Gujarat between July 7 and 9.

Last month, state gas utility GAIL (India) Ltd imported a cargo of 135,000 cubic meters from Algeria at an ex-shipment price of $9.28 per mBtu, the most expensive LNG ever imported into the country.

After adding various taxes and cost for converting the liquid gas back to its gaseous state and transportation tariff, this translated into a delivered price of 11.64 dollar per mBtu if sold outside Gujarat and $12.04 per mBtu if sold within Gujarat.

Sources said the FOB price paid by GAIL was more than that paid by Shell for its mid-April import of LNG to the Hazira LNG terminal. Shell is believed to have paid a CIF price of $8 per mBtu. Shell's LNG came from Oman. Shell's regasified-LNG was sold at 9.07 dollars per mBtu to Essar and Gujarat State Petroleum.

Essar bought 30 per cent of the 135,000 standard cubic meters cargo of Shell and GSPC the rest.

Petronet currently buys 5 million tonnes of LNG per annum from Qatar under a 25-year deal at a FOB price of $2.53 per mBtu.