India's Petronet to sign LNG deal with Qatar for supplies past 2028 -sources (updated)

Petronet LNG

06/02/2024 04:15

(Adds details on the new deal in paragraphs 3-4)
    By Nidhi Verma
       QUITOL, India, Feb 6 (Reuters) - India's Petronet LNG
 PLNG.NS  will sign a deal on Tuesday with Qatar to extend its
long-term liquefied natural gas (LNG) imports from the country
to beyond 2028, said three sources with knowledge of the matter.
        Under the existing deal that expires in 2028, Petronet
LNG imports 7.5 million metric tons per year of LNG from Qatar
priced at a slope of 12.67% of the current Brent crude oil
futures prices and a fixed charge of 52 cents per million
British thermal units (mmBtu).
  
        In the renewed deal, the fixed charge for Qatari LNG
will not be there, one of the sources said.
  
    Petronet is also expected to sign a separate deal for LNG
supplies on a delivered basis, all three of the sources said.
        Reuters reported last month that Qatar Energy could sign
a 
    long-term LNG
     deal offering destination-flexible cargoes and lower
pricing to Indian buyers.
  
        Qatar, the world's top LNG exporter, aims to expand its
liquefaction capacity to 126 million tons per year by 2027 from
77 million tons per year and has signed long-term deals with
European majors Shell  SHEL.L , TotalEnergies  TTEF.PA  and ENI
 ENI.MI .
  
    India wants to raise the share of natural gas in its energy
mix to 15% by 2030, up from 6.2% currently, as part of an effort
to cut emissions.

 (Reporting by Nidhi Verma; Writing by Florence Tan; Editing by
Tom Hogue and Christian Schmollinger)
 ((Florence.Tan@thomsonreuters.com; Reuters Messaging:
florence.tan.thomsonreuters.com@reuters.net))