According to a report from Reuters, India’s GAIL is in the final stages of negotiations for a long-term liquified natural gas (LNG) import agreement with Qatar. The potential deal, spanning over 20 years, is expected to involve an annual purchase of at least 1 million metric tons.
The agreement is a strategic move by the Indian company to achieve its goal of securing new supply contracts by 2030, said Reuters This initiative aims to diversify its gas imports and mitigate the risks associated with supply disruptions, such as those experienced following the Russian-Ukrainian conflict last year.
According to sources cited by Reuters, GAIL is in discussions to purchase between 1 million and 1.5 million tons of LNG from Qatar Energy. Additionally, GAIL, along with partially owned Indian LNG company Petronet, aims to extend its existing long-term agreement with Qatar beyond 2028. Under the current agreement, Qatar supplies 8.5 million tons of LNG annually.
Read more: India to connect with Gulf countries via $5 bn LNG pipeline
With the aim of increasing the share of natural gas in India’s energy mix from its current 6.5 percent to 15 percent by 2030, Indian companies are making substantial investments, amounting to billions of dollars, in gas infrastructure. Additionally, they are actively pursuing long-term agreements to secure the necessary supply for achieving this goal.
In July, Abu Dhabi’s ADNOC struck a 14-year deal valued between $7 billion to $9 billion with Indian Oil Corp to supply 1.2 million metric tonnes of LNG per year. That deal was finalized during India’s Prime Minister Narendra Modi’s recent visit to the United Arab Emirates (UAE).
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