Lok Sabha Question No. 839 (UNSTARRED), answered on 2018-07-23
Subject: Import of Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ANURAG SINGH THAKUR, SISIR KUMAR ADHIKARI

## LOK SABHA UNSTARRED QUESTION NO. 839 TO BE ANSWERED ON 23.07.2018

## Import of Natural Gas

## 839. SHRI ANURAG SINGH THAKUR:

## SHRI SISIR KUMAR ADHIKARI:

Will the Minister of PETROLEUM AND NATURAL GAS पेट्रोल ियम और प्राक ृ तिक गैस मंत्री be pleased to state:

(a) whether the Government proposes to reduce its import cost of natural gas into the country and if so, details thereof;

(b) whether the Government has started import of LNG supplies from Russia's Gazprom to attain its objective of a gas based economy and if so, the details thereof along with its price per unit as compared to other countries; and

(c ) the details of contracts signed for LNG imports with various countries along with import price of LNG in the country including technical feasibility for stocking and distribution of imported gas in the present scenario, country-wise?

## ANSWER

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) 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  2 nd February,  2017  has  reduced  the  basic customs duty on LNG from 5 per cent to 2.5 percent.

(b) Yes. 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 4 th 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.

- (c) Following  long-term  LNG  contracts  have  been  signed  by  Central  Public  Sector Undertakings (PSUs) and its Joint Ventures (JVs) with various countries:

|   Sl. No. | Name of the Company   | Supplier                                                      |   LNG Quantity (MMTPA) |
|-----------|-----------------------|---------------------------------------------------------------|------------------------|
|         1 | Petronet LNG Limited  | Ras Gas, Qatar                                                |                   7.5  |
|         2 | Petronet LNG Limited  | Ras Gas, Qatar                                                |                   1    |
|         3 | Petronet LNG Limited  | Mobil Australia Resources Company Pty. Ltd., Australia        |                   1.44 |
|         4 | GAIL                  | Gazprom Marketing& Trading Singapore Pte. Ltd. (GMTS), Russia |                   2.85 |
|         5 | GAIL                  | Sabine Pass, USA                                              |                   3.5  |
|         6 | GAIL                  | Dominion Energy Cove Point (DECP), USA                        |                   2.3  |
|         7 | IOCL                  | Diamond Gas International Pte Ltd, USA                        |                   0.7  |

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.