QatarEnergy to Finalize LNG Supply Agreement with India

Currently, Qatar supplies around 8.5 million tonnes of LNG per annum to purchasers in India.

SEATTLE (Oil Monster): QatarEnergy is reportedly in final stages of entering into a long-term liquefied natural gas (LNG) supply agreement with India. The deal is expected to reach completion by end-January or early-February, 2024. The new contract will extend the existing supply contracts until at least 2050. It must be noted that the ongoing contract is set to expire in 2028.

The proposed agreement would raise the proportion of natural gas in India’s total energy mix to 15% by 2030, significantly higher from the current 6.3%. Currently, Qatar supplies around 8.5 million tonnes of LNG per annum to purchasers in India.

In the wake of rising competition from other countries, especially from the U.S., Qatar aims to bolster its liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027. Also, Qatar has been consolidating its presence in Asian as well as European markets. It had recently entered into long-term agreements with energy majors including Shell, TotalEnergies, and Eni.

The proposed deal with India is expected to be officially revealed during the upcoming energy conference to be held from 6th to 9th February, 2024 in Goa, India. The deal demonstrates Qatar’s commitment to expand its international LNG footprint.

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