 "LNG, Gas")
By Stephen Stapczynski
Qatar is pushing to sell more liquefied natural gas to India, where imports of the super-chilled fuel are expected to double by the end of the decade.
The Persian Gulf producer will hold high-level talks with Gail India Ltd. and Indian Oil Corp. during India Energy Week in Goa, according to traders with knowledge of the discussions. It’s also likely to extend a long-term supply contract with Petronet LNG Ltd., which will expire in 2028, said the traders, who asked not to be named as the negotiations are private.
Indian buyers are demanding rates that are below previous deals that Qatar has signed in the last few years, the traders said. Saad Sherida Al-Kaabi, Qatar’s energy minister, is scheduled to attend negotiations for contracts that could last decades, they said.
Qatar, the world’s third-biggest LNG exporter, and India are under pressure to sign long-term deals. The Middle Eastern nation’s massive gas expansion project — which will lift exports by about two-thirds through 2027 — is in need of customers, with only about half sold so far, according to BloombergNEF.
Also Read
New Delhi, meanwhile, wants to boost imports to lift the share of natural gas in its energy mix to 15% by 2030 from about 6.7% at the end of 2023. The move is aimed at reducing its reliance on dirtier fossil fuels, such as coal and oil. Indian firms want long-term deals to lock-in supplies at affordable rates, as opposed to depending on the volatile and sometimes prohibitively expensive spot market.
India imported about 21 million tons of LNG in 2023, according to ship-tracking data compiled by Bloomberg. Deliveries are expected to reach at least 40 million tons by 2030 as new import terminals start up, according to the traders. But that still may not be enough to achieve the government’s gas target, especially if domestic production falters, they said.
Other suppliers, including Abu Dhabi National Oil Co. and Shell Plc, are also using the Goa conference to try and finalize long-term contracts with India, the traders said.
