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Business News/ Industry / Energy/  Petronet secures Qatari gas supplies till 2048
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Petronet secures Qatari gas supplies till 2048

State-run Petronet LNG Ltd has signed a 20-year deal with QatarEnergy for buying 7.5 million tonnes of liquefied natural gas (LNG) per annum

The 20-year deal is an extension of an existing contract for LNG supplies signed in 1999 which runs until 2028. ( )Premium
The 20-year deal is an extension of an existing contract for LNG supplies signed in 1999 which runs until 2028. ( )

State-run Petronet LNG Ltd on Tuesday signed a long-term deal with QatarEnergy for buying 7.5 million tonnes of liquefied natural gas (LNG) per annum.

The 20-year deal is an extension of an existing contract for LNG supplies signed in 1999 which runs until 2028. Supplies under the new agreement start in 2028 and continue until 2048.

LNG volumes under the new contract will go to Gail (India) (60%), Indian Oil Corporation Ltd (30%) and Bharat Petroleum Corporation Ltd (10%) after regasification—primarily from the Dahej terminal of Petronet LNG Ltd.

“This LNG SPA (sale and purchase agreement) between PLL and QatarEnergy will ensure energy security of India and assure continued supplies of regasified LNG to major consuming sectors like fertilizers, CGD (city gas distribution), refineries & petchem, power and other industries," said Petronet.

Akshay Kumar Singh, MD & CEO, Petronet LNG Ltd said: “The existing long-term agreement between Petronet LNG & 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. This agreement will provide energy security and ensure stable & reliable supply of clean energy and help India in its stride towards greater economic development."

He added that the long-term purchase agreement will further strengthen existing ties between the two companies.

“This agreement is another key milestone in the long-standing energy partnership between Qatar and India and comes on the heels of the 20th anniversary of the first LNG shipment to India," a QatarEnergy statement quoted Saad Sherida Al-Kaabi, the minister of state for energy affairs, the president and CEO of QatarEnergy.

The deal gains significance as the competition in the international market gained momentum in the past few years with the US also becoming a major supplier of the fuel.

India is a net importer of LNG and during the current financial year (April-December), it imported 22.85 billion metric standard cubic metres per day, against 20.01 billion metric standard cubic metres per day during the same period of the last fiscal.

The Centre has set a target of increasing the share of gas in the energy basket to 15% by 2030 from the current 6%.

Petronet LNG Ltd is a joint venture company with equity participation from four Oil & Gas Maharatna Public Sector undertakings: GAIL, ONGC, IOCL and BPCL, each holding equity of 12.50%, totalling to 50%.

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Published: 06 Feb 2024, 10:59 AM IST
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