Qatar Boosts LNG Sales to India Amid Growing Demand: Key Agreements and Market Dynamics
Qatar is ramping up its liquefied natural gas (LNG) sales to India, anticipating a doubling of imports of the super-chilled fuel by the end of the decade. The Persian Gulf nation recently extended a long-term supply agreement with Petronet LNG Ltd. for an additional 20 years, until 2048. Under the renewed contract, Qatar will provide 7.5 million tons of LNG annually and cover shipping expenses, a new term not present in the existing agreement. Furthermore, Qatar is engaging in high-level discussions with Gail India Ltd. and Indian Oil Corp. in Goa, aiming to secure additional deals.
Qatar is ramping up its liquefied natural gas (LNG) sales to India, anticipating a doubling of imports of the super-chilled fuel by the end of the decade. The Persian Gulf nation recently extended a long-term supply agreement with Petronet LNG Ltd. for an additional 20 years, until 2048. Under the renewed contract, Qatar will provide 7.5 million tons of LNG annually and cover shipping expenses, a new term not present in the existing agreement. Furthermore, Qatar is engaging in high-level discussions with Gail India Ltd. and Indian Oil Corp. in Goa, aiming to secure additional deals.
“We are here to serve the market in India and we want to be part of the expansion of its economy,” stated Qatar Energy Minister Saad Sherida Al-Kaabi, emphasizing the importance of the Indian market. Al-Kaabi brokered the negotiations with Petronet and expressed Qatar’s interest in exploring new agreements with Indian companies.
Indian buyers are seeking competitive rates compared to previous contracts signed by Qatar in recent years. Both Qatar and India face pressure to establish long-term agreements. Qatar’s significant gas expansion project, projected to increase exports by approximately two-thirds by 2027, requires additional customers, as only half of the projected exports have been secured so far.
On the other hand, India aims to elevate the share of natural gas in its energy mix to 15% by 2030, a substantial increase from the current 6.7%. This move is part of India’s broader strategy to reduce dependence on more polluting fossil fuels like coal and oil. Indian firms are seeking long-term deals to ensure a stable supply at competitive rates, mitigating reliance on the volatile spot market.
India’s LNG imports reached approximately 21 million tons in 2023, with expectations to surge to at least 40 million tons by 2030 as new import terminals come online. However, achieving the government’s gas targets may still pose challenges, especially if domestic production encounters obstacles. Other LNG suppliers, including Abu Dhabi National Oil Co. and Shell Plc, are also actively pursuing long-term contracts with India during the Goa conference, highlighting the heightened competition in the Indian LNG market.
Sources By Agencies
About The Author
Hi Neat post Theres an issue together with your web site in internet explorer may test this IE still is the marketplace chief and a good component of people will pass over your fantastic writing due to this problem