Bid & Tender
India Says LNG Import Deal with Qatar Remains in Place, New Deal Unlikely

Date : Aug 18, 2017

India will continue its 8.5 million mt/year LNG import deal with Qatar without any change in contract clauses, oil ministry officials said Thursday. "There is no proposal to sign any fresh import contract with Qatar," said one official. Qatar is India's largest source of natural gas. Designated importer state-owned Petronet LNG signed a long-term deal with Qatar's RasGas in 1999 for 7.5 million mt/year of LNG on an FOB basis. In 2015, it struck a deal with RasGas to import an additional 1 million mt/year for a 12-year period from January 1, 2016.

 

India in recent years has wanted Qatar to explore the option of investing in India's downstream power sector, and in particular in a stranded gas-based power project. Petronet runs LNG receiving and regasification terminals at Dahej in Gujarat and Kochi in Kerala, and is building a third in Andhra Pradesh. It posted a 12% year-on-year jump in regasification volumes to 192 trillion Btu for the April-June quarter at its flagship terminal at Dahej, the highest on record for the terminal, company officials said. The 10 million mt/year Dahej terminal operated at 97% of capacity in the quarter. The Kochi Terminal also processed its highest ever volume of LNG over April-June, at 8 trillion Btu.