London/Dubai: qatar energy can sign one within weeks long term deal to provide liquefied natural gas ,lng) to Indian buyers Cheap even more flexible The terms are higher than existing contracts, trade sources said, as India seeks to meet targets to increase fuel use.
Indian companies and Queue Energy terms have been agreed and a Contract Likely to be signed by the end of this month or early February, the contract offering destination-flexible cargo and low prices will run until at least 2050, possibly even longer, one of the sources said.
It will extend contracts expiring in 2028 to supply 8.5 million metric tonnes per annum (tpy) of LNG to Indian buyers and help fulfill Prime Minister Narendra Modi’s goal of increasing the share of natural gas in the country’s energy mix. Will play a role. 15% by 2030 which is 6.3% now.
Indian companies and Qatar Energy did not respond to requests for comment.
Qatar, which aims to increase its liquefaction capacity from 77 million to 126 million tpy by 2027, is keen to play a bigger role in Asia and Europe as competition from US supplies increases.
Last year, Qatar signed long-term agreements with European majors Shell, TotalEnergies and ENI.
The price of Qatari LNG is often fixed in relation to oil using a formula based on slope or percentage of crude oil.
A source said this deal Brent is likely to be finalized at a price of around 12% slope per million metric British thermal units (MMBtu). A second source gave a range of 12-12.5% for supplies to India on a free-on-board basis.
The second source said an agreement could be signed during an energy conference in India from February 6-9.
None of the sources could be named because they were not authorized to speak publicly.
Under the existing deal, India’s top gas importer Petronet LNG imports 7.5 million tonnes of LNG from Qatar on a delivery basis with a slope of 12.67% and a fixed charge of 52 cents.
Additionally, companies including state-run Indian Oil Corp, Bharat Petroleum and GAIL (India) – which have a stake in Petronet – jointly buy 1 million tonnes of LNG at the same price.
A third source said the new deal will allow Indian buyers to decide at which terminal in India the cargo will be received. Under existing deals, Qatar delivers LNG to western Gujarat state.
The source said the freedom to decide on the arrival terminal could enable Indian buyers to save on pipeline transportation costs within the Indian grid.
Petronet Chief Executive AK Singh said last year that his company could get a lower price from the 12-13% slope of Brent offered by Qatar to China and Bangladesh.
Indian companies and Queue Energy terms have been agreed and a Contract Likely to be signed by the end of this month or early February, the contract offering destination-flexible cargo and low prices will run until at least 2050, possibly even longer, one of the sources said.
It will extend contracts expiring in 2028 to supply 8.5 million metric tonnes per annum (tpy) of LNG to Indian buyers and help fulfill Prime Minister Narendra Modi’s goal of increasing the share of natural gas in the country’s energy mix. Will play a role. 15% by 2030 which is 6.3% now.
Indian companies and Qatar Energy did not respond to requests for comment.
Qatar, which aims to increase its liquefaction capacity from 77 million to 126 million tpy by 2027, is keen to play a bigger role in Asia and Europe as competition from US supplies increases.
Last year, Qatar signed long-term agreements with European majors Shell, TotalEnergies and ENI.
The price of Qatari LNG is often fixed in relation to oil using a formula based on slope or percentage of crude oil.
A source said this deal Brent is likely to be finalized at a price of around 12% slope per million metric British thermal units (MMBtu). A second source gave a range of 12-12.5% for supplies to India on a free-on-board basis.
The second source said an agreement could be signed during an energy conference in India from February 6-9.
None of the sources could be named because they were not authorized to speak publicly.
Under the existing deal, India’s top gas importer Petronet LNG imports 7.5 million tonnes of LNG from Qatar on a delivery basis with a slope of 12.67% and a fixed charge of 52 cents.
Additionally, companies including state-run Indian Oil Corp, Bharat Petroleum and GAIL (India) – which have a stake in Petronet – jointly buy 1 million tonnes of LNG at the same price.
A third source said the new deal will allow Indian buyers to decide at which terminal in India the cargo will be received. Under existing deals, Qatar delivers LNG to western Gujarat state.
The source said the freedom to decide on the arrival terminal could enable Indian buyers to save on pipeline transportation costs within the Indian grid.
Petronet Chief Executive AK Singh said last year that his company could get a lower price from the 12-13% slope of Brent offered by Qatar to China and Bangladesh.
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