Oil-linked LNG deals add to India’s discomfort as gas prices plunge
There is no easy way out of this dilemma for India. There are no global LNG price indexes. Those that claim that status are stillbirths. India needs an energy supply that reflects Indian reality. This means you establish a portfolio of the most important energy imports other than gas, weight proportions, and average import prices and give it a P0. Ah, let’s not forget the most important. It must convince LNG sellers that this formula is the thing they want to put into their longterm sales contracts. And also that the components of this formula are not prone to be fiddled with by India’s government. Maybe it’s better they set up a real gas market and a VTP. But this means giving up control over gas prices. Does India want that? So many questions.
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