RasGas agrees "floor-ceiling" price for Dahej LNG

Vol 6, PW 6 (22 May 02) News in Brief

RasGas of Qatar has "in principle" agreed to fix a floor and ceiling price for 5m t/y LNG it is selling to Petronet-LNG, according to a source close to talks between the two sides.

"Many of our customers are uncomfortable with the link between the LNG price and crude oil," he tells PETROWATCH. "This will give them a lot of comfort." Final agreement on the floor-ceiling figures, however, is still some way off.

"No figures have yet been agreed," he adds. "Talks are still going on but we are sure of reaching a solution." Absence of a floor-ceiling price for LNG has been a key point of disagreement between Petronet LNG and RasGas, a joint venture between Qatar General Petroleum Corporation and ExxonMobil.

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