The development represents a key step in securing India’s long-term energy needs.
India’s largest gas importer, Petronet LNG, is on the brink of finalising a significant agreement that will extend its importation of liquefied natural gas (LNG) from Qatar well past the year 2028, reported Reuters.
This development, announced by India’s Oil Secretary on Wednesday, represents a key step in securing India’s long-term energy needs.
Petronet currently has a robust import contract with Qatar, involving 7.5 million metric tons per year (tpy) of LNG.
Additionally, its promoters, Indian Oil Corp, Bharat Petroleum Corp, and GAIL (India) Ltd, collectively have an annual deal for 1 million tpy.
With the impending expiration of these contracts at the end of 2023, swift negotiations were imperative to guarantee the continuity of these essential energy imports.
“We are pretty close to signing the deal,” stated Pankaj Jain, India’s Oil Secretary, indicating a near-conclusion to the pivotal talks.
Qatar, renowned globally as the foremost LNG exporter, is ambitiously working to boost its liquefaction capacity from the current 77 million tpy to a staggering 126 million tpy by 2027.
This expansion plan has already seen Qatar clinching long-term agreements with major European entities such as Shell, TotalEnergies, and ENI, as well as with significant Asian partners including China’s Sinopec, China National Petroleum Corp, and Bangladesh.
This impending agreement between India and Qatar is not just a standalone development but is part of a long-standing and evolving energy relationship between the two nations.
The history of oil and gas trade between Qatar and India is marked by strategic partnerships, mutual growth, and a shared vision for a sustainable energy future.
India, with its burgeoning economy and growing energy demands, has always found a reliable partner in Qatar to meet its LNG needs.
This extended LNG import deal, once signed, will not only ensure India’s energy security but also reinforce the strong bilateral ties that have been nurtured over the years.
As India continues on its path of economic expansion, the assurance of a consistent and reliable energy supply from Qatar is set to play a pivotal role in supporting the country’s future growth and development.