QatarEnergy said Tuesday that it has extended an agreement to sell 7.5 million tons (Mt) of LNG annually to India.
The company said the 20-year sale and purchase agreement it signed with Petronet LNG Ltd. begins in May 2028. Qatar would deliver the liquefied natural gas to import terminals across the country.
“This agreement is another key milestone in the long-standing energy partnership between Qatar and India and comes on the heels of the 20th anniversary of the first LNG shipment to India,” said QatarEnergy CEO Saad Sherida Al-Kaabi.
Petronet first entered an agreement to buy 7.5 Mt/year of LNG from Qatar in 1999. It was followed by a second agreement in 2015 for an additional 1 Mt/year.
Al-Kaabi said the deal would support India’s “vision to increase the contribution of natural gas in its energy mix.”
The country wants to boost the share of natural gas in its energy mix to 15% by 2030 from nearly 7% at the end of last year. QatarEnergy is reportedly in talks with other buyers throughout India as it continues to line up offtakers for its massive North Field expansion project. The project would boost Qatar’s annual LNG output from 77 Mt to about 126 Mt by 2027.
