Qatar has agreed to lower the price of liquefied natural gas it sells to India to reflect the slump in global rates. Government-owned Petronet LNG on Thursday signed a revised contract with Qatar’s RasGas, lasting until 2028. Petroleum and natural gas minister Dharmendra Pradhan said the LNG price will now be around $6-7 per million British thermal units, compared to $12-13 now.

The new price will apply to 7.5 million tonnes of LNG that India buys from Qatar annually, with a rider that Petronet purchases an additional 1 million tonnes every year. NDTV reported Pradhan saying the move will save India around Rs 12,000 crore annually. According to analysts, the new pricing formula could also bring down the cost of compressed natural gas.

Demand for Petronet LNG stock rose after the deal, with around 2.5 lakh shares traded on Thursday, compared to the usual 62,000 shares traded daily for the last two weeks.