“Petronet LNG Secures Long-Term Deal with QatarEnergy for 7.5 MMTPA LNG”

Petronet LNG Limited (PLL), India’s leading LNG terminal owning company, has successfully executed a long-term LNG Sale & Purchase Agreement (LNG SPA) with QatarEnergy, marking a significant move in the energy sector. Under this contract for the purchase of approximately 7.5 MMTPA LNG, PLL extends its existing agreement signed on 31st July 1999, ensuring a continuous supply of LNG on a Free on Board (FOB) basis until 2028.

The stakeholders in this strategic deal include GAIL (India) Limited (60%), Indian Oil Corporation Limited (30%), and Bharat Petroleum Corporation Limited (10%). These entities will off-take LNG volumes after regasification, primarily from PLL’s Dahej Terminal, maintaining a substantially back-to-back arrangement.

The LNG SPA, effective from 2028 to 2048, reinforces PLL’s commitment to supporting major consuming sectors in India, including fertilizers, City Gas Distribution (CGD), refineries & petrochemicals, power, and other industries. Shri. Akshay Kumar Singh, MD & CEO of Petronet LNG Limited, emphasized the national importance of the agreement, accounting for around 35% of India’s LNG imports.

Renewal of this agreement aligns with the vision of the Hon’ble Prime Minister of India to transform the country into a gas-based economy, targeting a 15% share of natural gas in the primary energy basket by 2030. Shri. Singh highlighted that the long-term LNG purchase agreement with QatarEnergy solidifies the strong relationship between the two companies, providing energy security and supporting India’s journey towards greater economic development.

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