India is seeking long-term deals due to a high surge in Asian spot LNG prices.

India’s biggest gas importer, Petronet LNG is aiming to extend its long-term deal with Qatar to beyond 2028, the company said on Monday.

The Indian oil and gas company has already signed a deal to purchase 7.5 million tonnes per year (mtpa) of LNG from the Gulf state under a long-term deal expiring in 2028.

However, Petronet has now expressed interest in extending its deal with Qatar before it expires in seven years time, Head of Finance V.K. Mishra said.

“It is a good contract and perhaps we will be able to negotiate with them,” Mishra told an analyst after the June quarter revenue of Petronet.

He said the company will carry out negotiations starting from 2023 to further extend the contract under new terms and conditions. 

Read also: Qatar’s economy ’emerging strong’ post Covid-19 pandemic: PwC

India’s Prime Minister Narendra Modi is seeking to increase shares of the cleaner fuel in the state’s energy mix from the current 6.2% to 15% by 2030.

Meanwhile, Petronet is set to build a third LNG import terminal on the east coast of the country to further expand its capacity. 

Mishra also noted that the company is carrying out gas demand assessment before it starts placing construction orders for the project set to commence next year.

Demands for supplies under long-term deals have increased recently as LNG prices in India witness significant spikes, Petronet said on Saturday.