India: Oil Ministry Orders Probe into Petronet-RasGas LNG Deal

India’s Oil Ministry has ordered a probe into changes made in a LNG contract between Petronet LNG and RasGas of Qatar.

The country’s Oil Minister S Jaipal Reddy asked Oil Secretary G C Chaturvedi to probe allegations that Petronet LNG quietly switched to buying lean gas, which can only be used as fuel, instead of rich gas that can also produce petrochemicals and LPG, The Economic Times reported.

In July 1999, RasGas signed a SPA with Petronet LNG  to supply 5 million tonnes per annum (Mtpa) to India’s first operational LNG terminal at Dahej in Gujarat.

In August 2006 RasGas and Petronet amended the existing SPA to implement the sale of 2.5 Mtpa, completing a 7.5 Mtpa sales agreement over 25 years.

[mappress]
LNG World News Staff, February 20, 2012; Image: Petronet LNG