Qatar said on Thursday it would not cut the price of liquefied natural gas for India, dashing New Delhi's hopes of a better deal.

"I don't think so. We have signed a long-term contract," Qatari Energy Minister Abdullah al-Attiyah told Reuters in an interview when asked if the LNG price would be renegotiated.

"We went through a difficult tender against international companies and we made all efforts to give India the best price of LNG which has never been implemented before and we succeeded, and certainly if you have a tender, you have to respect your tender."

Discovery of a big reserve of natural gas off India's east coast had fuelled hopes among senior Indian government officials that Qatar might lower the LNG price to compete with the extra domestic supply.

Qatar will supply five million tonnes of LNG a year at a terminal at Dahej in western India. Qatar's Ras Laffan LNG Co will start shipping the gas in December.

India contracted to import LNG as the country's gas output of 65 million cubic metres (2.3 billion cubic feet) a day meets less than half its demand of 151 million cubic metres.

But last October, the supply situation changed when oil and petrochemicals conglomerate Reliance Industries Ltd announced the discovery of an estimated seven trillion cubic feet of gas in southeastern India.

India's cash-starved power and fertiliser units, which buy 80 per cent of the natural gas sold in India, are pressing for stable and low gas prices.

Attiyah, who is also OPEC president, said Qatar was keen to offer stability.

"We have tried to help India by offering a price band. We are very supportive," he said, but added that offering the price band did not amount to renegotiation of the contract.

Officials have refused to divulge the contracted price of LNG but the head of India's largest gas marketing company, Gail India Ltd, said potential customers wanted a lower price.

Oil ministry officials say the price of LNG from Qatar would be in the range of $3-4 per million BT linked to a crude oil price of $16-24 a barrel. Transporting the gas from the port to the customer is expected to add another $1-1.5 to the cost.

"The power and fertiliser companies have told us they cannot pay more than $3.5 per million British Thermal Units inclusive of taxes," Gail chairman Prashanto Banerjee said.