Exxon Mobil’s deal to cut India LNG prices is actually quite good: Russell

12 Sep 2017   North Korea

Exxon Mobil’s deal to cut the price of liquefied natural gas (LNG) supplied under long-term contract to an Indian buyer has largely been viewed as a bad outcome for producers of the super-chilled fuel. Certainly the trade made by Exxon to supply more LNG to Petronet LNG, but at a lower price, does seem to favor the Indian utility. Exxon will increase the volume supplied from its share of the Chevron-led Gorgon project in Western Australia by 1 million tonnes a year to about 2.5 million tonnes, but at a lower cost than originally agreed in 2009. The revised deal has sparked market speculation that this is the first domino to fall, and that more re-negotiations of long-term LNG […]

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