Petronet LNG and Qatar Energy extend Liquefied Natural Gas (LNG) supply deal for another 20 years beyond 2028

Posted 07 Feb 2024

Updated 16 Mar 2024

2 min read

New agreement between India and Qatar, inked during the ongoing India Energy Week 2024 in Goa, is pursuant to extension of an existing long-term contract for LNG supply, signed in 1999 for supplies till 2028.
- Under new agreement, LNG supply of 7.5 million metric tonnes per annum will be commencing from 2028 till 2048.
- Indian companies also have term contracts for LNG in Australia and UAE.

Significance of agreement
- Promote Gas Based Economy by increasing the share of gas in energy mix from 6% to 15% by 2030.
- Ensure continued supplies of regasified LNG to major consuming sectors like fertilisers, city gas distribution, refineries, power generation etc.
- Reduce import bills as Natural gas is cheaper and cleaner fuel than crude oil. Thus, it is a more affordable alternative to imported crude oil.

LNG is a clear, colourless, non-toxic liquid which forms when natural gas is cooled to a liquid state, at about -260° Fahrenheit (-162^oCelsius), for shipping and storage.

Initiatives taken to promote Natural Gas
- LNG terminals at Dahej, Hazira and Mundra (Gujarat), Dhabol (Maharashtra), Kochi (Kerala) and Ennore (Tamil Nadu).
- One Nation One Gas Grid Project to increase availability of natural gas across country.
- Gas4India campaign.

It is one of the fastest growing world-class Public Limited Company in Indian energy sector.
It is a joint venture of Oil and Natural Gas Corporation, Indian Oil Corporation Limited, GAIL (India) Limited, and Bharat Petroleum Corporation Limited.

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