RasGas to revise LNG prices for India every month

NEW DELHI, Dec 23 (Reuters) - Prices of liquefied natural gas (LNG) supplied by Qatar's RasGas to India's Petronet LNG (PLNG.BO) under a long-term contract will now be revised on a monthly basis, Junior Oil Minister Dinsha Patel said on Tuesday.

Petronet agreed to buy five million tonnes of LNG every year from RasGas under the deal, with the price linked to the Japan Custom Cleared Crude rate.

But it contained a clause which allowed prices to be revised from January 2009.

"From January 2009, the price of LNG would vary on month to month basis depending on the crude price variation," Patel said in a written reply to lawmakers.

Supplies under the agreement are expected to be raised to 7.5 million tonnes next year.

Petronet also has a short-term agreement with RasGas to buy 1.5 million tonnes of LNG until September 2009. "The price for the remaining period of the contract, i.e. January-September 2009, would be re-negotiated," the minister added.

(Reporting by Nidhi Verma)