India-Qatar LNG deal, 20-year extension secured

India is poised to finalize La substantial USD 78 billion deal aimed at extending liquefied natural gas (LNG) imports from Qatar for an additional 20 years, sources revealed. Petronet LNG Ltd, the country's largest LNG importer, is anticipated to ink the agreement with Qatar Energy during the India Energy Week (IEW) gathering. The deal is expected to secure supplies of 7.5 million tonnes of LNG annually for various purposes, including electricity generation, fertilizer production, and conversion to compressed natural gas (CNG).

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Insiders suggest that the renegotiated terms of the agreement will yield significant cost savings for India, with prices projected to be notably lower than the current arrangement. This move is estimated to result in savings of approximately USD 0.8 per million British thermal unit (mmBtu) compared to existing rates.

Currently, Petronet imports 8.5 million tonnes per year (MTPA) of LNG from Qatar under two separate contracts.