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India,Qatar : GAIL INDIA offers help to QATAR PETROLEUM to acquire 5% stake in PETRONET LNG.

The major Indian state-owned natural gas processing and distribution company, Gail India has entered talks with Qatar to buy 3 million tonnes of liquid natural gas (LNG) at a price lower than the proposed $14 per unit.

The state-owned company is also offering help to Qatar Petroleum to acquire 5% stake in Petronet LNG.

GAIL is seeking a price of $12.5 per unit for LNG.

The company has in exchange proposed to waive its preemptive rights on the 5% stake in Petronet that Asian Development Bank has put out for sale.

A senior Gail official said This can enable the Qatari company to acquire that stake.

He said : 'These are all negotiation tactics. In case Qatar agrees to our terms, we could consider waiving our preemptive rights on ADB's stake. We see them softening their stance as they have realised that we have negotiated lower LNG prices at Sabine pass, US and Gorgon, Australia'.

He added : "What is Qatar putting on the table? LNG contract? But it's not like they are giving Petronet a sweet deal and lowering prices. So, why should the Indian side give them access to Petronet when we at Gail can strengthen our position by raising our equity in Petronet, which also makes complete commercial sense?."

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Publication:Mena Report
Geographic Code:7QATA
Date:Aug 27, 2013
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