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Friday, December 3, 2021

India urges Qatar to expedite delivery of LNG amid power crisis


India is urging the Qatari energy supplier to send delayed LNG cargoes as an alarming power crisis deepens. 

India called on Doha to expedite the delivery of liquefied natural gas (LNG) cargo it said was delayed, sources told Reuters. 

Qatargas has yet to transport 50 LNG cargoes to India after an infrastructure maintenance project at the Qatari supplier facility caused a delay in delivery this year, the source said, “prompting the petroleum ministry last week to write a letter seeking delivery of those cargoes.”

India is struggling with its worst power crisis in five years due to coal shortage amid growing demand for energy and a global energy crisis.

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.

Read also: India’s top gas importer to extend LNG deal with Qatar

India’s biggest gas importer, Petronet LNG previously signed a deal to purchase 7.5 million tonnes per year (mtpa) of LNG from the Gulf state under a long-term deal expiring in 2028.

The Indian oil and gas company expressed interest earlier in extending its long-term deal with Qatar to beyond the expiring date. 

However, due to power shortage, Indian energy plants reduced operation capacity by nearly 14 gigawatts GW. 

India’s petroleum ministry, Qatargas and its parent company QatarEnergy (formerly known as Qatar Petroleum) are yet to comment on the latest developments. 

The Gulf state is India’s largest LNG supplier, according to Natural Gas Intelligence. 

Meanwhile, Qatargas has recently started building four new liquefied natural gas (LNG) mega-trains that will help lift its production capacity from 77 million tonnes per year to 110 million tonnes per year.

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