Due to unprecedented volatility in the global energy and commodities markets, the majority of the world’s economies experienced slowing growth and high inflation. However, India continued to be an exception, largely due to its focus on manufacturing, expansion of private consumption, expansion of rural demand, and expansion of infrastructure.
According to traders with knowledge of the conversations, the Persian Gulf producer would have high-level discussions with Gail India Ltd. and Indian Oil Corp. during India Energy Week in Goa. According to the traders, who wished to remain anonymous due to the private nature of the talks, it is also expected to prolong a long-term supply agreement with Petronet LNG Ltd. that is set to expire in 2028.
Energy resources that are more dependable and less polluting must power this drive. The nation seems to be adjusting its stance in that direction as it purchases LNG from Qatar, one of the biggest LNG exporters globally.
India and Qatar are expected to extend their LNG import agreement for 20 years at reduced prices. According to insiders, India is expected to sign a multibillion dollar agreement on Tuesday to continue importing 7.5 million tonnes of LNG annually from Qatar for a further 20 years after 2028 at costs that are less than those of today.
On the fringes of India Energy Week, Petronet LNG Ltd. will sign an agreement with Qatar Energy to prolong their import contract.
According to an official, the signing will take place in Goa during India Energy Week in 2024.
This agreement seeks to help India’s plan to raise the proportion of natural gas in its energy mix from 6.2% to 15% by 2030, in line with initiatives to lower emissions and boost economic growth.
According to the Union Ministry of Petroleum and Natural Gas, there will be over 4,000 delegates, over 350 exhibitors, over 400 presenters, and over 35,000 guests at the event.
Currently, promoters Indian Oil Corp, Bharat Petroleum Corp, and GAIL (India) Ltd, which hold a 1 million tpy agreement, support Petronet’s 7.5 million metric ton per year LNG import arrangement with Qatar.
By 2027, Qatar aims to boost its liquefaction capacity from 77 million tpy to 126 million tpy. It has agreements in place with Shell, TotalEnergies, and ENI.
“The agreement between Petronet LNG and Qatar Energy marks a step in energy partnership between India and Qatar, contributing to India’s energy diversification and emission reduction objectives,” according to an expert.
The price will be “significantly” less than it is now, according to sources.
