India signs $78-bn LNG deal with Qatar
This pact for 20 years till 2048 at rates lower than current prices will help India save $6-bn
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Fuelling Deal Leverage
- Petronet LNG likely to sign a deal with QatarEnergy to extend a 2004 deal to buy 7.5MT gas annually
- It’ll be used for producing electricity, making fertilizers and converting to CNG
- Renewal at a significantly lower price than the current deal
- India will save $0.8/mBtu at the renewed terms
Betul (Goa): India on Tuesday signed a $78 billion deal to extend LNG imports from Qatar by another 20 years till 2048 at rates lower than current prices. Petronet LNG Ltd, India’s biggest liquefied natural gas (LNG) importer, in a statement said it has signed a pact with QatarEnergy to extend the deal to buy 7.5 million tonne a year of gas for producing electricity, making fertilizers and converting it into CNG.
The deal was signed on the sidelines of India Energy Week (IEW) here. Sources said the renewal is at a significantly lower price than the current deal. At current prices, India will save about $0.8 per million British thermal unit at the renewed terms. This translates into savings of $6 billion over the contract period. Petronet imports 8.5 million tonne per annum (MTPA) of LNG from Qatar under two contracts.
