Petronet LNG Ltd (PLL), India's biggest gas importer, today signed a revised contract with RasGas of Qatar. The price as per the revised formula will come to USD 6-7 per million British thermal unit as against USD 12-13 per mmBtu currently, oil minister Dharmendra Pradhan said.

Pradhan said the reworked formula will apply to 7.5 million tonnes a year of LNG India buys from RasGas on a long-term contract ending in April 2028.

The revised formula will base the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan, with a rider that PLL buys an additional 1 million tonnes of LNG annually.

The trailing three-month average Brent price is about USD 44 a barrel while the average of Japan Crude Cocktail for the 5-year period ended September 30 was USD 94.

The value of the under-lifted cargoes in 2015 is Rs 12,000 crore and if the change-to-price formula was implemented, it would suggest a USD 2.5 billion buyer saving over three years.

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