In a significant development, QatarEnergy and India’s Petronet LNG have sealed their largest-ever single deal for liquefied natural gas (LNG) supplies, underlining India’s intensified efforts to utilize LNG for emissions reduction.
The agreement entails Qatar supplying 7.5 million metric tons per year of LNG to Petronet LNG on a delivered ex-ship basis (DES) from 2028 to 2048, according to a statement by Petronet LNG.
As the world’s second-largest LNG exporter, Qatar aims to amplify its presence in Asian and European markets amid mounting competition, particularly from leading supplier, the US. Qatar is poised to enhance its liquefaction capacity from 77 million tons per year to 126 million tons per year by 2027.
This deal marks a renewal of an existing agreement set to expire in 2028, wherein Petronet LNG imports 7.5 million metric tons per year of LNG from Qatar on a free-on-board (FOB) basis. The pricing terms for the renewed deal have not been disclosed.
The off-takers of the LNG volumes include GAIL (India) Limited, Indian Oil Corporation Limited, and Bharat Petroleum Corporation Limited, receiving supplies of the super-chilled fuel at a ratio of 60:30:10 respectively after regasification at Petronet’s Dahej import terminal.
Petronet LNG, as India’s premier gas importer, predominantly procures gas under long-term agreements with Qatar and Australia, supplying it to Indian energy firms for distribution to end-users.
