On Feb 6, India signed a USD 78 billion deal to extend LNG imports from Qatar by another 20 years till 2048 at rates lower than current prices. Petronet LNG Ltd, India's most significant liquefied natural gas (LNG) importer, in a statement, said it had signed a pact with QatarEnergy to extend the deal to buy 7.5 million tonnes a year of gas for producing electricity, making fertilizers, and converting it into CNG.
The deal was signed on the sidelines of India Energy Week (IEW) in Betul (Goa).
Sources said the renewal is at a "significantly" lower price than the current deal. At current prices, India will save about USD 0.8 per million British thermal units at the renewed terms. This translates into savings of USD 6 billion over the contract period.
Petronet imports 8.5 million tonnes of LNG per annum (MTPA) from Qatar under two contracts. The first 25-year deal is to expire in 2028 and has now been extended for 20 additional years. Sources said the sources said that the second deal for 1 MTPA entered into in 2015 would be negotiated separately.
As per the 1999 deal for 7.5 MTPA, the renewal was to be agreed upon five years before the end of the supply term. That deadline was in December 2023.
The two sides were engaged in intense negotiations over the last few months. There were heightened tensions when a Qatar court sentenced eight former Indian Navy officials to death in October for allegedly spying for Israel. At December-end, their sentence was reduced.
