World’s biggest LNG exporter Qatar is looking to boost its liquefaction capacity from the current 77 million tpy to 126 million tpy by 2027.
India’s Petronet LNG is set to sign a deal with Qatar on Tuesday, extending its long-term liquified natural gas (LNG) imports beyond the existing agreement that expires in the year 2028, three sources revealed.
Under the current deal, Petronet LNG imports 7.5 million metric tonnes annually from Qatar, pegged at 12.67% of the prevailing Brent crude oil futures prices and a fixed charge of 52 cents per million British thermal units (mmBtu).
However, the renewed agreement is set to shake matters up as the fixed charge for Qatari LNG will be eliminated, as disclosed by one of the sources.
Petronet is also set to seal another significant deal for LNG supplies, this time on a delivered basis, according to all three sources privy to the matter.
India intends to enhance the share of natural gas in its energy mix to 15% by 2030, a substantial surge from the current 6.2%, in an attempt to curb emissions.
World’s biggest LNG exporter Qatar is looking to boost its liquefaction capacity from the current 77 million tpy to 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.
