The deal ensures the supply of 7.5mtpa of LNG to India, bolstering the country’s energy security.
Under the SPA, starting in May 2028, QatarEnergy will deliver the contracted LNG volumes ex-ship to various terminals in India using its extensive LNG fleet.
The agreement was signed during India Energy Week in Betul, Goa. It builds on the long-standing energy partnership between Qatar and India.
Petronet first secured an LNG supply deal from Qatar in 1999, agreeing to an annual delivery of 7.5mtpa.
This was augmented in 2015 with an additional 1mtpa, bringing the total long-term contracted volume to 8.5mtpa.
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According to a PTI report posted on the Economic Times, the renewed terms offer a “significantly” lower price compared with the current deal.
With the prevailing prices, India is expected to save approximately $0.8 per million British thermal units.
Over the duration of the contract, this price reduction could result in savings of around $6bn for India.
The new SPA between Petronet LNG and QatarEnergy is set to play a pivotal role in meeting India’s energy needs.
It will ensure a steady supply of regasified LNG to key sectors such as fertilisers, city gas distribution, refineries, petrochemicals, power and other industries.
QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “We believe that this new agreement, with our valued customers Petronet LNG and its esteemed shareholder companies, will further strengthen the relationship with India and support its vision to increase the contribution of natural gas in its energy mix.”
Petronet LNG MD & CEO Akshay Kumar Singh said: “The existing long-term agreement between Petronet LNG and QatarEnergy today accounts for around 35% of India’s LNG imports and is of national importance.
“Renewal of this agreement is a step towards achieving vision of Hon’ble Prime Minister of India to make India a gas-based economy and increase share of natural gas in India’s primary energy basket to 15% by year 2030.”