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Home STOCKS Petronet says Qatargas, Exxon objected to drive majeure on LNG imports

Petronet says Qatargas, Exxon objected to drive majeure on LNG imports


NEW DELHI, June 30 (Reuters) – India’s top gasoline importer Petronet LNG stated on Tuesday suppliers Qatargas and Exxon Mobil Corp (NYSE:) XOM.N objected to the force majeure it invoked in March just after local demand slumped for the reason that of lockdowns to stem the spread of COVID-19.Petronet has a deal to buy 7.5 million tonnes for each annum (mtpa) of LNG from Qatar and 1.44 mtpa from Exxon’s Gorgon venture in Australia.Petronet invoked the drive majeure on 8 LNG cargoes of Qatar and just one from Exxon for loading from March to Might, its head of finance V.K. Mishra informed an analyst convention.Pressure majeure is a clause in business contracts allowing firms to not fulfill contracts since of event outside their control.”They have objected to this drive majeure, we are making an attempt to influence them and ideally we will perform out a resolution mainly because as per contract this is admissible,” Mishra reported.”They have objected to it but they have not presented any rationale why this is not a drive majeure.”Exxon Mobil and Qatargas did not instantly reply to e-mails from Reuters requesting remark on their objections to the pressure majeure.Mishra also explained Petronet is in talks with Qatargas to renegotiate fuel pricing less than its long-term promotions as spot prices have declined.Indian gasoline demand has recovered now and the company’s Dahej LNG terminal, which can deliver in 17.5 mtpa, is now working at about 100% capacity, Mishra stated.He hoped the Dahej terminal will continue to absolutely operate for the remainder of the fiscal year to March 2021, even though capacity use at the 5-mtpa Kochi terminal will strengthen following a crucial pipeline linking prospects is prepared this yr.Petronet’s non-binding memorandum of comprehending to buy a stake in Tellurian Inc’s Driftwood LNG undertaking expired in May perhaps, Mishra mentioned, including his firm may perhaps renew the pact.

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