Government sources said with spot LNG prices now crashing to about $2-3 per million British thermal unit (mmBtu) and gas widely available in the market, it would make little sense to sign an agreement committing to pay on sea price of $3.5 to $4.5 per mmBtu for 40 years for the gas. The delivered price of gas would be even higher the deal would have to be renegotiated given the current market prices or shelved, sources said. A PLL official also said with prices at record low levels and easily available, the company is more concerned about
signing LNG supply contracts rather than investing in greenfield project that will meet needs after five to seven years.
In September last year a non-binding MoU was signed between PLL and Tellurian that gave the Indian entity PLL the option to buy 5 million tonne per annum (mtpa) LNG from Tellurian’s Driftwood project on the banks of the Calcasieu river in Louisiana.