The supply of liquefied natural gas to India would be increased by four million tones per year through ships from 2013 by Qatar.

The Gulf nation asked for $10 per unit, more than double the $4.20 per unit price determined by the government for the LPG from Andhra offshore field of Reliance Industries Ltd. A nod in yes to this decision was given by Qatar during the bilateral talks between the ministers of the two countries.

Talks were held between Union petroleum minister Murli Deora and Qatar's deputy PM and energy minister Abdullah bin Hamad Al Attiyah who has come to India as the chief guest of the 6th Asia Gas Partnership Summit.

It was specified by the petroleum ministry official that the offer to increase supply would be subject to the pricing agreement. It was assured by Al Attiyah that he has no issues in supplying any requirement. He also lent a helping hand during 2008 and 2009 when India faced shortages.

Via this agreement, Qatar and the US would be permitted to sell committed LPG to other countries if it can get a better price. At the US benchmark index, the price is nearly $4 per unit.