The 15-year $16 billon LNG deal with Qatar will be based on take and pay mode under which PSO will be liable to pay for all quantities in case it fails to purchase the product.
However, the seller will be having 20 percent liability in case LNG is not delivered or substandard product is delivered to PSO and in case off spec LNG is delivered where neither PSO nor the seller was aware of that LNG was outside specification, then the cap on liability will be at 25 percent, a senior official while quoting the summary on the LNG deal said.
