Qatar has agreed to lower the gas price for India, and waive off a $1.5-billion penalty for lower offtake.
LNG prices are expected to fall by $5.50 per mmBtu after Qatar agrees to reflect the slump in energy rates in its India gas deal.
India is to buy an additional 1 million tonnes per annum of LNG from Qatar at a new pricing formula.
The agreement was signed between Qatar's RasGas and Petronet LNG, India's biggest importer of liquefied natural gas (LNG). Qatar is one of the world's largest exporter of LNG while India is one of the biggest importers of the commodity.
Oil minister Dharmendra Pradhan said the fresh agreement with Qatar will save Rs 12,000 crore for the Indian economy annually.
Petronet, which has a 25-year contract to annually buy 7.5 million tonnes of liquefied natural gas (LNG) from RasGas, has currently reduced purchases by about a third this year due to high supply prices, making the Indian company liable for a $1.5 billion penalty.
(With agencies input)