India seeks first cut in LNG imports under Qatar deal -source

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By Nidhi Verma

NEW DELHI, – India is in talks with Qatar to import at least 10 percent less liquefied natural gas (LNG) a long-term deal after a slide in spot prices has cut demand by local buyers, an Indian government source with knowledge of the negotiations said.

New Delhi would for the first time use a 10 percent reduction permissible under a 25-year with Qatar’s RasGas to import up to 7.5 million tonnes a year of the super cooled fuel, said the source.

“We to lift as little volume as possible under the contract,” the source told Reuters, adding that India intended to use a tolerance limit of 10 percent in 2015.

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“But we are negotiating for cuts deeper 10 percent. All LNG terminals are running at lower capacity as customers are lifting volumes,” said the source, who declined to be identified due to the sensitivity of the issue.

Telephone calls to Qatar’s LNG producer RasGas seeking comment were not immediately answered.