Mumbai, Nov. 9 -- Petronet LNG, India's largest importer of liquefied natural gas (LNG), is discussing the possibility of sourcing some US LNG through its renewed long-term supply agreement with Qatar from 2028. The move would help India diversify imports after disruptions linked to the conflict involving Iran and the resulting impact on Gulf energy shipments.
Qatar is considering India's request to include US-sourced cargoes under the renewed arrangement, according to Vivek Mittal, group general manager at Petronet LNG. He made the disclosure during an analyst call while responding to questions about whether the Indian company was seeking US supplies through the Qatar contract.
Qatar currently supplies Petronet LNG with 7.5 mn t of LNG annually. The existing agreement expires in April 2028 and has been renewed for another 20 years, taking it through 2048, with Qatar responsible for delivering the cargoes to India.
Under the proposed arrangement, Qatar could provide a portion of the contracted volume from supplies secured from other producers. QatarEnergy recently signed a 20-year agreement to purchase 3 mn t of LNG annually from Woodside's US facilities, with deliveries expected to begin in 2030. It has also signed agreements with Cheniere Energy covering up to 4 mn t annually through 2054 from the Sabine Pass and Corpus Christi plants.
QatarEnergy declared force majeure on LNG supplies in March after the conflict involving Iran led to the blockade of the Strait of Hormuz and attacks on its Ras Laffan facilities. The force majeure currently runs through December. India has responded by seeking alternative supplies from the US, Oman, Nigeria, Angola and Australia, while Petronet LNG has suspended time-charter agreements for three LNG tankers because of the disruption to Qatari deliveries.
Published by HT Digital Content Services with permission from Construction World.