Qatar negotiates 5 million tn a year LNG contract with India

Qatar negotiates 5 million tn a year LNG contract with India

Singapore: Qatar is negotiating to supply four to five million tonnes per annum of liquefied natural gas (LNG) to India, the emirates deputy Prime Minister, Abdulla Bin Hamad Al-Attiyah, said on Monday.

The additional LNG would be for the Tamil Nadu market through a LNG receiving terminal being built near Chennai.

Addressing the Singapore International Energy Week, Al-Attiyah said the LNG would be diverted from its existing long-term LNG export contracts with the United States buyers, as there is a provision for the two sides to divert excess capacity for better prices.

Al-Attiyah, who is also the Energy and Industry Minister of Qatar, did not touch on the likely price but market sources said Qatar would be looking for a spot price of $9 per million British Thermal Unit.

Qatar has an earlier contract to supply 7.5 million tonnes a year of LNG to India through Dahej LNG receiving terminal.

Al-Attiyah also said negotiations were underway to supply some 7 million tonnes a year of additional LNG to China, with which the emirates currently has 5 million tonnes a year LNG export contract.

Al-Attiyah impressed on the importance of China and India as the growing LNG markets, saying that the LNG would be the best competitive energy in the coming decades.