NEW DELHI: India signed a multi-billion dollar deal to extend LNG imports from Qatar till 2048 at rates that are lower than current prices on Tuesday, sources said.
The country will supply 7.5 MMTPA (million metric tons per annum) of LNG to India for the next twenty years.
The deal is an extension of an existing agreement supplying around 7.5 MMTPA of LNG from Qatar to India until 2028.
Petronet, in a press note, said LNG supplies will be made on a delivered (DES) basis from 2028 to 2048. Similar to the earlier 1999 agreement, GAIL (India) Limited (60%), Indian Oil Corporation Limited (30%), and Bharat Petroleum Corporation Limited (10%) will off-take the LNG volumes after regasification, primarily from Dahej Terminal of PLL, on a substantially back-to-back basis.
“The existing long-term agreement between Petronet LNG and Qatar Energy currently accounts for around 35% of India’s LNG imports and is of national importance. The renewal of this agreement is a step towards achieving the vision of the Honorable Prime Minister of India to make India a gas-based economy and increase the share of natural gas in India’s primary energy basket to 15% by 2030," said Akshay Kumar Singh, MD and CEO of Petronet LNG Limited.
Meanwhile, GAIL said it will off-take about 4.5 MMTPA of LNG from Petronet.
"According to the government, the agreement will provide energy security, ensure a stable and reliable supply of clean energy, and help India in its stride towards greater economic development,” Singh added.
He further added that the long-term LNG purchase agreement with Qatar Energy will strengthen the existing relationship between the two companies.
The deal will ensure the energy security of India and assure continued supplies of regasified LNG to major consuming sectors like fertilizers, CGD, refineries, petrochemicals, power, and other industries. India aims to increase the share of natural gas in the country's energy basket from 6% to 15% by 2030.