Petronet Seeks US LNG Under Qatar's 20-Year Supply Deal
· Free Press Journal
India's largest liquefied natural gas (LNG) importer, Petronet LNG, is holding discussions with Qatar to secure US-sourced cargoes under its renewed long-term supply agreement, as the Iran war disrupts energy shipments from the Middle East, Reuters reported.
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Petronet's Group General Manager Vivek Mittal said during an analyst call on Tuesday that Qatar was willing to consider supplying part of its contracted volumes from alternative sources.
The discussions are aimed at diversifying India's LNG imports and reducing exposure to disruptions affecting supplies through the Strait of Hormuz.
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Qatar, India's biggest LNG supplier, currently supplies Petronet with 7.5 million metric tonnes annually under an agreement expiring in April 2028.
The contract has been extended by another 20 years, until 2048, with cargoes to be delivered by Qatar.
Mittal said Petronet had discussed diversifying supplies under the renewed agreement, which takes effect in 2028.
According to him, Qatar could provide a portion of the contracted volumes from other sources where it has secured supply arrangements.
QatarEnergy recently signed a 20-year agreement to purchase 3 million metric tonnes of LNG annually from Woodside Energy's US facilities, with deliveries expected from 2030.
It has also entered into two agreements with Cheniere Energy for up to 4 million tonnes annually through 2054, sourcing gas from the Sabine Pass and Corpus Christi facilities.
QatarEnergy declared force majeure on LNG deliveries in March after the Iran war led to a blockade of the Strait of Hormuz and attacks on its Ras Laffan facilities.
The disruption-related declaration currently extends through December.
India has consequently sought alternative LNG supplies from the US, Oman, Nigeria, Angola and Australia.
Petronet has also suspended time charter agreements for three LNG tankers because of the interruption in Qatari supplies.
Although Qatar has expressed willingness to consider India's proposal, the companies have not announced any agreement to include US-origin LNG in Petronet's renewed contract.