To secure 3 million tonnes of LNG at a price lower than the offered $14 per unit, Indian government-owned natural gas processing and distribution company Gail India is negotiating with gas-rich Qatar. Gail India is offering to help Qatar Petroleum to buy 5 per cent equity in Petronet LNG. Gail India wants a price of $12.5 per unit for LNG.
In return, it has offered to waive its preemptive rights on the 5 per cent stake in Petronet that Asian Development Bank is selling.
This can help Qatar Petroleum buy that stake, sources in Gail said. These are all negotiation tactics. In case Qatar agrees to Gail's terms, it could consider waiving its preemptive rights on ADB's stake.