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Saturday, November 27, 2021

India ‘to negotiate’ undelivered cargoes before renewing Qatar LNG contract


Top liquefied natural gas [LNG] exporter QatarEnergy, formerly Qatar Petroleum, has expressed its commitment to being a ‘trusted partner’ in supplying energy to India.

India is set to negotiate with Qatar over 58 cargoes of LNG that have yet to be delivered as part of an upcoming discussion to renew a multi-billion dollar gas deal with the Gulf state, Indian media outlets reported on Sunday.

Qatar and India’s biggest gas importer, Petronet LNG, previously signed a major deal to purchase 7.5 million tonnes per year [mtpa] of LNG from Doha. The long-term agreement expires in 2028 and its extension has to be confirmed five years in advance.

QatarEnergy reaffirms its commitment to Indian market

Quoting Petronet Director-Finance V K Mishra, recent reports stated that talks for the extension of the agreement will start next year and will set the delivery of the pending LNG shipments as a condition for the renewal.

This comes following a delay in LNG shipments to India that was caused by infrastructure maintenance at the Qatari supplier facility this year.

India’s petroleum ministry also requested eight other cargoes that were halted last year at New Delhi’s request as Covid-19 induced lockdowns decreased demand for the super-cooled fuel.

“We have requested Qatar to give us the pending 50 cargoes next year,” Mishra said, noting that Petronet LNG has yet to receive a response to their request.

The Gulf state then said the undelivered cargoes can be shipped any time during the remaining duration of the contract.

Last week, Qatar’s top LNG exporter QatarEnergy expressed its commitment to being a “trusted partner” in supplying energy to India, saying it does not miss shipments it has obligations to deliver.

“We remain committed to being the trusted partner for energy supplies in India and around the world,” QatarEnergy said in a statement late on Wednesday.

In August this year, Petronet LNG expressed interest in extending its long-term deal with Qatar beyond the expiring date. The Gulf state is India’s largest LNG supplier, according to Natural Gas Intelligence.

New Delhi has been asking Doha to expedite the delivery of delayed LNG cargo as it battles with its worst power crisis in five years. India has been struggling due to a coal shortage amid growing demand for energy and an overall global energy crisis.

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