Ras Laffan Liquefied Natural Gas Co Ltd (RasGas) of Qatar has pulled out of state-run National Thermal Power Corporation's tender for supply of 3 million tonnes of LNG for its power plants.
RasGas, a joint venture between Qatar Petroleum and ExxonMobil Corp, cited tough tender conditions as the reason for its withdrawal from the race.
"NTPC tender presented unrealistic conditions for LNG suppliers. The terms (set by NTPC) are not balanced," a senior RasGas official said from Doha, Qatar.
The official, who wished not to be named, said NTPC bid conditions had stipulated that gas supply contract could be terminated by giving a 90-day notice.
NTPC also stipulated the LNG supplier to quote a fixed price for 25-years and match the gas price with future LNG suppliers to any other projects in the country.
"How do you justify a $4 billion investment in constructing liquefaction plant, LNG ships, regassification plant and other host of activities if NTPC decides to terminate the contract on grounds that we did not match our price with that offered by say Shell or Reliance or Petronet LNG to any other project," he said.
Besides, NTPC had also asked bidders to grant India the most favoured nation status - meaning the supplier would have to lower its price for India if it sells gas to any other country in the world at lower prices.
"There are 48 such terms to which we were not agreeable," the official said, adding that NTPC did not accept suggestions made by several bidders to the gas tender.
NTPC officials were unavailable for comments.
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