Petronet LNG, India’s leading liquefied natural gas (LNG) importer, is set to ink an agreement on Tuesday with Qatar to extend its long-term LNG imports beyond 2028, according to sources familiar with the matter. The current deal, expiring in 2028, involves Petronet LNG importing 7.5 million metric tons of LNG annually from Qatar. The pricing is based on a slope of 12.67% of the current Brent crude oil futures prices, along with a fixed charge of 52 cents per million British thermal units (mmBtu). In the renewed agreement, the fixed charge for Qatari LNG will be omitted, as per one of the sources.
Additionally, Petronet is anticipated to finalize a separate deal for LNG supplies on a delivered basis, as confirmed by sources. Last month, Reuters reported that Qatar Energy was considering a long-term LNG deal offering destination-flexible cargoes and more competitive pricing to Indian buyers.
Qatar, the world’s leading LNG exporter, aims to boost its liquefaction capacity to 126 million tons per year by 2027. The country has already secured long-term agreements with major European players such as Shell, TotalEnergies, and ENI.
India, seeking to increase the share of natural gas in its energy mix to 15% by 2030 from the current 6.2%, is likely to sign a multi-billion dollar deal on Tuesday. This agreement would extend the import of 7.5 million tons of LNG annually from Qatar for an additional 20 years beyond 2028, with rates anticipated to be lower than current prices, as indicated by the sources. The signing is expected to take place during India Energy Week on the sidelines of the event.
