QatarEnergy signs 17-year LNG supply agreement with India’s GSPC

QatarEnergy has signed a 17-year agreement with Gujarat State Petroleum Corporation (GSPC) to supply up to one million tonnes per annum (mtpa) of Liquefied Natural Gas (LNG) to India, the company announced on Wednesday, October 29.

The contracted LNG volumes will be delivered ex-ship, directly to Indian terminals from 2026.

Saad Sherida Al-Kaabi, Qatar's energy affairs minister and the President and CEO of QatarEnergy, expressed continued commitment to supporting India’s growing energy needs.

“This

collaboration not only reinforces the enduring ties between our two companies but also contributes to India’s vision of enhancing its energy security and transitioning towards a cleaner energy mix," he said.

QatarEnergy and GSPC had signed their first long-term LNG supply agreement in 2019. The long-term deal also underscores Qatar’s growing role as a key supplier of LNG to India’s expanding energy market.

At present, India has eight LNG terminals with a combined capacity of 52.7 million tonnes a year with plans to increase import by 27% to 66.7 mtpa by 2030.

Oil minister Hardeep Singh Puri said last month that the country will have two more two more plants.

In February 2024, state-owned Petronet LNG Ltd (PLL) renewed its long-term LNG supply contract with QatarEnergy for around 7.5 mtpa of LNG, extending the existing arrangement from 2028 to 2048. Under the renewed sale and purchase agreement, supplies will shift from free-on-board (FOB) to delivered ex-ship (DES) terms.

As part of that deal, GAIL India Ltd said at the time that it would offtake about 4.5 mtpa, equivalent to its 60% share of volumes, on a back-to-back basis from Petronet.

In 2024, India became the fourth largest importer of LNG energy in the world, accounting for 7% of the global LNG imports.