India to sign multi-billion-dollar deal with Qatar to extend LNG import for 20 years at lower rates

India is likely to sign on Tuesday a multi-billion dollar deal to extend import of 7.5 million tonnes of LNG per year from Qatar for another 20 years beyond 2028 at rates that are lower than current prices, sources said.

Petronet LNG Ltd will sign the deal to extend import contract with Qatar Energy on sidelines of India Energy Week here. The signing of the deal is planned to take place on the sidelines of the India Energy Week 2024 in Goa, according to an official statement. This agreement is intended to bolster India’s strategy of augmenting the share of natural gas in its energy portfolio to 15% by 2030, a significant increase from the current 6.2%. This aligns with India’s efforts to mitigate emissions and foster sustainable growth.

Qatar, the world’s top LNG exporter, aims to expand its liquefaction capacity to 126 million tpy by 2027 from 77 million and has signed long-term deals with European major Shell.

State-run GAIL (India) Ltd had signed a 10-year liquefied natural gas (LNG) import deal last month with trader Vitol to buy about 1 million metric tons per year (tpy) of the super-chilled fuel from 2026.

Indian companies are investing billions of dollars to build natural gas infrastructure and are scouting for long-term LNG import deals as the nation wants to raise the share of natural gas in its energy mix to 15% by 2030 from the current 6.3 per cent.

India Energy Week, 2024 anticipates attracting over 35,000 attendees, 350 exhibitors, 400 speakers across 80 conference sessions, and 4,000 delegates from 120 countries. This event will feature a diverse range of global exhibitors, spanning core oil field services, to create a dynamic atmosphere and offer an unparalleled global platform to unite the best and brightest of the energy ecosystem.

With India’s growing global significance in the energy sector, IEW 2024 is expected to surpass its inaugural edition, which was graced by PM Narendra Modi in Bengaluru last year. The Prime Minister’s vision for India’s role in the evolving global energy landscape set the stage for a highly successful event in 2023, where India showcased its prowess as a global energy leader.

The vibrant coastal state of Goa will serve as the ideal host for this global gathering of the energy ecosystem, taking place from February 6 to 9 at the IPSHEM-ONGC Training Institute.

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